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Australian Gold and Copper (ASX:AGC) has put a bow on the acquisition of the Browns Reef tenement package from Eastern Metals (ASX:EMS), in a move that doubles the explorer’s footprint in South Cobar to 2,600 square kilometres.
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The Australian explorer walks away from the deal, which was first mooted in August, with four exploration licences: EL6321, EL9136, EL9180, and EL9565.
The company was quick to spruik the expansion move as a “major growth step,” especially considering the move gives AGC belt-scale control in what it’s been heralding as an “emerging mineral province” in New South Wales.
“Doubling AGC’s landholding in South Cobar represents a massive growth step for the company,” managing director Glen Diemar said today.
What attracted AGC to the area in the first place was the numerous areas of high-grade mineralisation already drilled across hundreds of metres of strike. There’s several large gaps where additional mineral inventory will be targeted, Mr Diemar explained, which easily shape as “very attractive” growth targets.
“We will focus our initial drilling at the silver-gold rich northern prospects, Evergreen and Kelpie Hill, with the potential to deliver an early maiden resource, which will have strong synergies with Achilles,” he said.
“We welcome EMS and its shareholders into AGC’s register and look forward to developing our South Cobar project portfolio for the benefit of all shareholders.”
EMS is now a shareholder thanks to the structure of the deal: AGC paid $200,000 in cash and a further 6.933 million AGC shares to the precious metals explorer, valued at around $1.3 million when the bargain was struck.
AGC will also assume a 1.5% net smelter return royalty on production from the EL6321 exploration licence, specifically, payable to the old owner.
Stock-wise today, AGC has climbed +5.3% to 20cps on the news.
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