WIN Metals (ASX:WIN) secures near-term production asset with acquisition of high-grade radio gold mine

Following the announcement of WIN Metals Ltd’s (ASX:WIN) binding agreement to acquire the fully permitted Radio Gold Mine in Western Australia, investors have raised several key questions around the acquisition terms, resource upside, development strategy and broader implications for the company’s growth trajectory.

Below, Steve Norregaard, Managing Director and CEO of WIN Metals, provides detailed, fact-based responses to the most frequently asked questions.

What makes the Radio Gold Mine an attractive near-term production opportunity for WIN?

The Radio Gold Mine brings together several advantages that are rarely seen in a single acquisition.

The mine is already equipped with significant underground development, including 330 metres of decline and 200 metres of ore access.

Above ground, the project includes ore stockpiles, site buildings, mine vehicles and a power supply setup that remains in place.

The project also includes a partially constructed 500,000 tonne per annum processing plant.

Around 70 percent of the concrete footings have been completed and structural steel work is underway.

Two ball mills, rated at 650kW and 900kW, are already onsite. These elements give the project a strong foundation to support a restart.

“Radio represents a fantastic opportunity for WIN to acquire a fully permitted gold mine capable of generating near term cashflow harnessing the current elevated gold price.”

“The site is fully prepared to restart underground production, with a partially completed processing facility and significant operations ready infrastructure that has the potential to allow WIN to consider the option of processing its own ore and reducing dependence on delayed payments often associated with toll milling.”

In addition to the infrastructure, the project contains a 2018 JORC-compliant Mineral Resource of 210,000 tonnes at 4.23 grams per tonne gold for 28,600 ounces, with a historical production profile of 71,000 ounces at 38.5 grams per tonne.

This combination of past performance and physical readiness makes Radio a highly leveraged development asset.

What are the next steps before mining operations can recommence at Radio?

Our immediate focus is on finalising the remaining approvals required to complete the acquisition, after which our geological team will be mobilised to site to commence a focused drill program aimed at confirming and expanding shallow gold mineralisation.

This program will target three key areas: Radio Repeater, Radio South and the central zone of the existing resource.

We plan to drill approximately 7,000 metres using a 10 metre by 10 metre reverse circulation grid, with results intended to support an updated mineral resource estimate and form the basis for open pit mine planning.

In parallel, we are reviewing the processing plant infrastructure to determine the most efficient pathway for its completion, with our assessment focused on a conventional crushing, grinding and gravity recovery circuit, and the potential addition of vat leaching to improve overall gold extraction.

This approach is supported by historical metallurgical testwork, which demonstrated a gravity recovery rate of 87 percent, indicating that this processing strategy may be both technically effective and operationally efficient.

How does this acquisition fit into WIN’s broader strategy across its portfolio?

Radio complements our gold strategy and offers a clear path to becoming a producer.

The company is already advancing the Butchers Creek Gold Project in the Kimberley, which holds a 5.6 million tonne resource at 1.98 grams per tonne for 359,000 ounces of gold.

Radio adds a second gold development asset and is uniquely positioned to deliver production in the near term.

By building on the existing infrastructure and targeting low-capex restart options, we can bring cash flow into the business earlier than originally planned.

We are also continuing to progress our lithium and nickel assets in the Southern Goldfields, including the Mt Edwards Nickel Project with 180,900 tonnes of contained nickel and the Faraday-Trainline Lithium Project, which has a mineral resource of 1.96 million tonnes at 0.69 percent Li₂O.

The addition of Radio strengthens our ability to deliver value across multiple commodities and locations.

“This acquisition provides an opportune stepping stone for WIN, elevating the company to the ranks of a producer at what was once the highest-grade producing gold mine in Western Australia.”

What level of confidence does WIN have in the current mineral resource at Radio, and is there potential to expand it?

The current Mineral Resource Estimate, completed by REZ in 2018 under JORC 2012 guidelines, reports 210,000 tonnes at 4.23 grams per tonne for 28,600 ounces of contained gold.

Of this, 50,000 tonnes are classified as indicated and 160,000 tonnes as inferred.

Since publication, 3,193 tonnes of ore were processed through the Marvel Loch Mill, yielding 581 ounces at a reconciled grade of 5.66 grams per tonne, which provides further confidence in the grade profile.

While WIN has not yet independently validated the estimate, our review of the available drilling data and geological interpretation supports the quality of the resource.

The lodes remain open down dip and along strike, and importantly, historical drilling has not tested depths beyond 260 vertical metres.

We have also identified multiple shallow mineralised zones that were not prioritised by previous owners.

These are the focus of our upcoming drill campaign, which aims to expand the resource and support additional open pit mining studies.

What is the cost structure of the acquisition, and how does it impact WIN’s financial position?

The acquisition terms are designed to be capital-efficient.

The upfront component includes $500,000 in cash, which incorporates a previously paid $50,000 deposit, and a share-based consideration of $400,000 at two cents per share.

The share issue will fall under the company’s Listing Rule 7.1 placement capacity, and the vendor is not a related party of WIN.

There is also a stepped royalty structure, with a 5 percent net smelter return royalty applicable to the first 18,000 ounces of gold production.

Beyond that, a 1.5 percent royalty will apply on any additional production from the Radio mine.

The transaction is fully funded from internal cash reserves, supported by proceeds from the recent divestment of non-core assets.

This structure allows us to acquire a permitted, infrastructure-ready gold mine without requiring additional equity capital, thereby preserving shareholder value and ensuring funds remain available for exploration and development works.

“With this acquisition, we now have a range of development pathways before us. Our clear priority is to select the strategy that maximises profitability for WIN shareholders.”

Strategic growth backed by near-term production potential

WIN Metals acquisition of the Radio Gold Mine marks a significant step in transitioning toward near-term production while unlocking long-term value across the company’s asset base.

With key approvals pending and drilling programs in planning, WIN is focused on delivering updated resource estimates, progressing development studies, and advancing processing options that make use of the existing infrastructure.

The company will continue to provide shareholders with updates as milestones are achieved across the Radio project and its broader portfolio.

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