Sinclair Gold Ltd has completed more than 20,000 metres of drilling at the Mt Henry Gold Project in Western Australia, passing a key operational threshold that triggers the first contingent consideration milestone from its acquisition of the asset.

Under the terms of the acquisition agreement with Westgold Resources Limited, reaching the 20,000-metre drilling mark requires Sinclair to settle a contingent consideration payment. Sinclair acquired the Mt Henry project from Westgold in a transaction completed in February 2026. The company has elected to satisfy the payment through $5 million in cash delivered to Westgold within 15 business days. As a direct consequence of choosing the cash settlement rather than equity alternatives, 7,575,758 performance rights associated with the contingent consideration will be cancelled. Sinclair is positioned to cover the obligation comfortably, reporting $38.2 million in cash on hand as of 30 June 2026.

The completed drilling forms a substantial component of a broader 50,000-metre drilling program that Sinclair initiated following the project acquisition in February 2026. The Mt Henry deposit hosts total Mineral Resources of 24 million tonnes at a grade of 1.2 grams per tonne gold, containing 915,000 ounces. Drilling operations across the project remain active, and the company is targeting the delivery of an updated Mineral Resource Estimate before the end of December 2026.

Alongside the drilling milestone, Sinclair has confirmed that all conditions precedent have been satisfied for its previously announced transaction with Stria Lithium Inc., with formal completion scheduled within five business days. In April 2026, Sinclair received an initial $1 million non-refundable deposit from Stria. Upon completion of the final steps, Sinclair will collect a further $4 million in cash and 4 million Stria shares in consideration for granting a 1% net smelter return royalty over the Mt Henry project.

Read the full announcement: Drilling Milestone Achieved at Mt Henry Gold Project