AustChina Holdings (ASX:AUH) Acquires Gold-Antimony Projects
Acquisition Details
AustChina Holdings Limited (ASX: AUH) has entered into a binding agreement to acquire Penwortham Exploration Pty Ltd (PEN), gaining a portfolio of gold-antimony and base metals exploration assets in north-west Tasmania’s premier mining districts.
Project Portfolio
The acquisition includes the Sulphide Creek Gold-Antimony Project in the Tier-1 Queenstown mining district and the Mersey VMS Base Metals and Gold Project. Both projects are located in active mineral belts with a strong history of exploration and mining success. Notably, the Sulphide Creek Project has reported high-grade antimony samples, enhancing its exploration potential.
Financial Consideration
As consideration for the acquisition, AustChina will pay PEN shareholders a cash amount of $25,000 and issue 300 million fully paid AUH shares. These shares will be subject to a six-month voluntary escrow and will be issued under AUH’s placement capacity in accordance with Listing Rule 7.1.
Future Plans
Upon completion of the acquisition, AustChina plans to initiate targeted fieldwork at both projects, including maiden drilling programs within six months. The company aims to apply modern exploration techniques to unlock the full potential of these historic antimony and gold targets.
Executive Comments
Chief Executive Officer Andrew Fogg stated, “We are excited about the opportunity that this acquisition presents for AustChina. We have evaluated a number of potential new projects and are of the view that the value accretive potential of both the Sulphide Creek Project and Mersey Project represents a best-fit for the Company. On successful completion of the acquisition, we plan to commence exploration activities at both projects, designed to generate initial priority drill targets, and deliver shareholder value from our targeted, systematic exploration programs.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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