Haranga advances Lincoln Gold Project, resulting in creation of further value for Seduli
Highlights:
- Haranga has commenced drilling from underground at the Lincoln Mine, thereby fulfilling Milestones A and B of the Binding Share Sale Term Sheet executed between Haranga and Seduli in March 2025
- Haranga has also recently released results for infill aircore drilling at Ibel South, which are consistent with earlier gold discovery results and confirm the existence of a >800m mineralised corridor
- Achievement of the first two Lincoln milestones means Seduli has now received 40 million Haranga shares (subject to escrow), to bring to 80,000,000 the total shares received by Seduli so far out of the maximum possible total consideration of 160million shares
- The current drilling programme at Lincoln is aimed at converting the existing historical NI 43-101 gold resource of 286koz @ 9.3g/t Au to JORC
- Seduli-nominated Director, Mr Bruce McCracken, appointed to Haranga Board
- Seduli assessing options for shareholder value distribution following escrow expiry
Seduli Holdings (Australia) Limited (“Seduli”) is pleased to update shareholders on progress following completion of the sale of its Lincoln Gold Project in Sutter Creek, California, USA, to Haranga Resources Limited (ASX: HAR) (“Haranga”) pursuant to a Binding Share Sale Term Sheet (“Agreement”) and the subsequent advancement of drilling and development activities.
The sale was completed on 28 July 2025 and involved the sale of Seduli’s wholly owned US subsidiary, Seduli Holdings (USA) LLC, to Haranga in exchange for up to 160 million Haranga shares, 40 million of which were issued upfront and the balance liable to be issued in tranches subject to the satisfaction of various project milestones. The transaction price was set at $0.05 per Haranga share, reflecting Haranga’s prevailing share price at the time. Concurrently, Haranga completed a $6 million capital raising at $0.05 per share, and had 92 million shares on issue at the time the Agreement was executed.
At the time Seduli entered the transaction, Haranga’s project portfolio comprised two Senegalese projects; the Saraya uranium project, which hosts a mineral resource of approximately 16 million pounds of U₃O₈, and the Ibel South Gold Project, which was then at a Greenfields stage. Since completion of the transaction, Haranga has announced a new gold discovery at Ibel South following aircore drilling, significantly enhancing the scale of its gold portfolio.
Following this discovery, Haranga completed a second capital raising of $14 million at $0.14 per share (nearly 3 times the imputed share price at which Seduli’s transaction with Haranga was undertaken). Funds from this raising are being directed toward expanded drilling and development activities at both the Lincoln Gold Project and Ibel South.
Lincoln Transaction Structure and Milestone Progress
Under the Agreement, Seduli is entitled to receive up to 160 million Haranga shares across five tranches, comprising an upfront consideration and four (success-based) milestone payments. These milestones are directly linked to the advancement of the Lincoln Gold Project, and the Board remains confident they will be achieved in a timely manner.
Seduli received the upfront consideration of 40 million Haranga shares on completion on 28 July 2025. Save for a portion of those shares which Seduli is able to sell so as to be able to pay existing debts (which have now been satisfied), these shares are subject to a six‑month escrow period expiring on 30 January 2026.
Seduli has since received an additional 40 million Haranga shares following the achievement of:
- Milestone A: Acceptance of the Lincoln drilling database; and
- Milestone B: Commencement of drilling at the Lincoln Gold Project.
All milestone shares issued to date are subject to escrow until 30 January 2026, consistent with the upfront consideration.
Seduli has now received 80 million Haranga shares in total, representing 50% of the maximum consideration under the Agreement. The remaining 80 million Haranga shares are linked to the delivery of JORC‑compliant Mineral Resource Estimates or Exploration Targets at Lincoln and the Keystone prospect.
The transaction is subject to an 18‑month warranty period, which expires on 28 January 2027.
As provided for under the Agreement, Mr Bruce McCracken has been appointed to the Haranga Board as Seduli’s nominee director, ensuring Seduli retains strategic insight into the ongoing development of the Lincoln Gold Project.
Commencement of Drilling at Lincoln following key site preparations
To support the underground drill program at Lincoln, Haranga has completed significant preparatory work. Dewatering of the Stringbean Alley Decline began shortly after transaction completion and is now well advanced, providing access to underground drill platforms. The on-site water treatment plant is fully operational and performing within permitted environmental standards. In parallel, underground electrical upgrades are underway to enable safe and efficient drilling at depth.
Figure 1: Dewatering continues, with XC4 in background, as denoted by cut out on the left, and the yellow signage to the Mine Refuge chamber next to services on the right. Photo taken 27th November 2025.
With site access secured, Haranga recently commenced its maiden underground diamond drilling program at the Lincoln Gold Project. The program aims to convert the existing 958,910t @ 9.29 g/t Au (~286koz Au at a 4.2 g/t cut-off) NI 43-101 resource into a JORC-compliant Mineral Resource Estimate, targeted for delivery in Q1 2026. The drilling will also test for potential mineralised repetitions beneath the existing resource, with the aim of identifying additional high-grade gold zones and expanding the known footprint.
Drilling is being conducted by Swick Mining Services, one of the world’s leading underground diamond drilling contractors. A Gen II underground rig has been mobilised from Nevada for the program, which includes approximately 2,200 metres across 21 holes, with scope for up to 2,500 metres.
The 2015 resource estimate was based on a cut-off grade of 4.2 g/t gold. Future resource estimates are expected to incorporate updated drill data and reflect the significantly higher gold price environment.
With the commencement of drilling, Milestones A and B under the Agreement were successfully satisfied, resulting in the issue to Seduli of the full amount of 40,000,000 Haranga shares to which those milestones related.
Figure 2: Swick Gen II underground diamond drill rig, drilling DDH251 at crosscut 3 (XC3).
Seduli’s Managing Director Toby Davis commented:
“We’re delighted to see the Lincoln Project advancing at pace and Haranga delivering on its commitments. With underground drilling underway, the first two milestones now met, and Haranga successfully raising $14 million to support its growth, our shareholders are clearly benefiting from the strength of this transaction. We look forward to providing further updates ahead of our AGM in early 2026.”
Next Steps for Seduli Shareholders
Preparations are underway for Seduli to hold its 2025 Annual General Meeting in early 2026, at which the Board expects to provide further guidance on the timing and structure of value distribution to shareholders. Audited financial statements will also be provided to shareholders along with the meeting materials which will be despatched over the coming weeks to shareholders in relation to the AGM.
The Board intends to ensure that Seduli shareholders have the opportunity to participate directly in the value created as a result of the company’s transaction with Haranga. Work is currently underway to determine the most efficient and equitable method of returning value to shareholders in that regard.
Seduli currently has 1,391 shareholders, largely as a result of an in‑specie distribution of seed shares by Impelus Pty Ltd in 2023. Approximately 1,220 shareholders hold parcels valued at less than $500, which increases the cost and complexity of registry administration and shareholder communications. The Board is reviewing options to reduce this complexity while ensuring shareholders remain appropriately informed and treated fairly.
Shareholders are strongly encouraged to register for electronic communications via the Seduli website at www.seduli.com.au to ensure timely receipt of future updates, including details regarding value distribution. News and developments at Haranga can be found at the company’s website (www.haranga.com.au) and their ASX page (HAR share price and company information for ASX: HAR).
Further announcements will be made as additional milestones are achieved and distribution planning progresses.
For further information, please contact:
Toby Davis
Managing Director
Seduli Gold
Phone: +61 409 282 893