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Australian Gold and Copper Ltd (ASX:AGC) now stands as the dominant titleholder in the South Cobar Basin, locking down belt-scale control in the province after putting a bow on a $400,000 tenement sale with Strategic Energy (ASX:SER) this week.
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The Strategic-AGC deal will see Australian Gold and Copper pay $50K up front and $350K more once everything is wrapped up. Both planned payments will be in cash. In return, AGC gets New South Wales exploration title EL9012.
That EL9012 title stretches 270sqkm, expanding South Cobar to a total of 1,400sqkm.
“We believe the gold endowment of the South Cobar Basin can be unlocked,” AGC’s managing director, Glen Diemar, declared after the sale was finalised.
AGC were particularly interested in picking up the South Cobar chunk as it’s home to the Achilles Shear Zone. It’s a fairly “underexplored” district in the South Cobar area, Mr Diemar explained, relative to its geological fertility.
With Achilles in hand, AGC can now “drive a smarter and faster approach to identifying new mineralised systems across the belt” as it works in South Cobar.
“[Our] exploration advantage stems from what we’ve learned through Achilles,” Mr Diemar said.
Both AGC and Strategic will be heavily invested in how the exploration goes too — the last payment for the deal will see AGC pay Strategic $100 per gold-equivalent ounce dug up from the tenement, up to a hard cap at $1 million.
The South Cobar titleholder will have six months to pay that chunk post-production.
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For Strategic Energy, this sale shapes as a “sensible consolidation” that confirms the South Cobar chunk and its potential discoveries will be “systemically explored.”
“This transaction is aligned with SER’s strategy,” managing director Dr David DeTata explained today. “Generate high-quality greenfields projects, add value through science-driven exploration, share risk and reward with credible partners.”
Before open, AGC has been at 18cps and is tipped for a 2.78% jump. SER is at 0.7cps.
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