en.Wedoany.com Reported - Australian exploration company Peako Ltd (ASX: PKO) has entered into a binding agreement to acquire 100% interests in a portfolio of gold exploration projects in Saudi Arabia, marking a strategic shift towards a globally emerging gold exploration frontier.
The acquisition agreement covers 10 exploration licenses across six project areas in the Central Arabian Gold Region, totaling 862 square kilometers. This region is a relatively underexplored belt, surrounded by several operating gold mines and multi-million-ounce deposits. To support the acquisition and subsequent exploration and growth plans, Peako has simultaneously launched a A$5.17 million capital raising.
Chairman Gernot Abl stated that the deal provides the company with multiple drill-ready targets, historical high-grade gold intercepts, and district-scale discovery potential. He noted that the acquired portfolio offers an entry point into one of the world's most prospective emerging gold regions, with projects located near operating mines, identified high-grade gold mineralization, and a team possessing deep local experience and a track record of successful discoveries. The company's early focus will be on the defined drill-ready targets at Sukhaybarat South, Jabal Jumaymah, and Wadi Jarir. He also mentioned that Saudi Arabia is emerging as a globally significant mining destination, driven by attractive government incentives and the presence of major miners such as Barrick, Zijin Mining, and Hancock Prospecting. With a low upfront acquisition cost, milestone-based consideration, and a fully funded 2026 work program, this acquisition provides shareholders with strong discovery leverage in a new gold frontier, combining near-term drilling opportunities with a broader pipeline of regional targets and potential future license applications in Saudi Arabia.
The acquired portfolio is located within 65 kilometers of operating gold mines, including projects adjacent to the 2-million-ounce Sukhaybarat gold mine and near the 3.4-million-ounce Bulghah gold mine. Peako highlighted three priority exploration areas with historical drilling results ready for immediate follow-up: Sukhaybarat South Western Prospect returned drill intercepts of 4 meters at 11.32 g/t gold and 5 meters at 5.6 g/t gold; Jabal Jumaymah returned drill intercepts of 7 meters at 10.12 g/t gold, 10.9 meters at 2.37 g/t gold, and 7 meters at 5.44 g/t gold; and Wadi Jarir returned 0.70 g/t gold over a 26-meter wide zone, including 2 meters at 13.53 g/t gold. These three prospects remain open along strike and at depth and will be the focus of early drilling activities.
Sukhaybarat South is expected to become Peako's flagship asset in Saudi Arabia. The project is located on the same geological structure as the adjacent Sukhaybarat gold mine and contains three priority prospects, including a 7-kilometer soil gold anomaly at the Eastern Prospect and outcropping mineralization at the Central Prospect. Jabal Jumaymah features shallow, high-grade mineralization, with rock chip samples grading up to 41 g/t gold. Wadi Jarir contains broad gold zones with encouraging historical drilling results but limited subsequent work. Additionally, the company has secured a pipeline of earlier-stage projects, including Bulghah East, which hosts a 10-kilometer-long soil gold anomaly parallel to the structure hosting the Bulghah gold mine, and Ad Dirabi, a stockwork gold system with historical rock chip grades up to 33.6 g/t gold.
Alongside the acquisition, Peako has secured firm commitments for a A$5.17 million capital raising via a placement at A$0.004 per share, with directors and management committing to subscribe for A$625,000, subject to shareholder approval. The placement will be completed in three tranches, with the majority requiring approval at a general meeting expected to be held in late July 2026. Funds will be used to complete the acquisition, advance exploration of the Saudi portfolio, continue work on its Australian Kimberley project, and strengthen working capital. Initial allocations include A$650,000 for drilling at Sukhaybarat South, Jabal Jumaymah, and Wadi Jarir; A$250,000 for mapping, soil sampling, and geophysics across the Saudi portfolio; A$600,000 for exploration at the Kimberley project; A$100,000 for the cash consideration of the acquisition; and A$3.9 million for working capital.
Peako plans to commence exploration immediately upon completion of the acquisition, targeting the start of drilling at the three priority projects in the third quarter of 2026. Concurrently, ground exploration programs will generate new targets across the portfolio. The company is strengthening its leadership team for its Saudi operations, appointing experienced geologist Marcus Harden as a Non-Executive Director and Saudi-based exploration specialist Oliver Jones as Saudi Exploration Manager.
Peako is an Australian exploration company with legacy projects in the Kimberley region of Western Australia. Through this Saudi acquisition, the company is positioning itself as a gold-focused explorer targeting large-scale discoveries in the underexplored Central Arabian Gold Region. The strategy combines near-term drilling opportunities with a broader pipeline of regional targets and potential future license applications in Saudi Arabia.
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