AustChina Holdings Limited (ASX:AUH) Completes Due Diligence for Gold-Antimony Acquisition
Acquisition Details
AustChina Holdings Limited (ASX:AUH) successfully completed due diligence for acquiring 100% of Penwortham Exploration Pty Ltd (PEN). PEN holds the Sulphide Creek Gold Antimony Project (EL16/2022) and has applied for the Mersey Volcanogenic Massive Sulphide (VMS) Base Metals and Gold Project (EL6/2021) in north-west Tasmania. AustChina has waived the condition precedent of granting EL6/2021, allowing the acquisition to proceed. The consideration includes a cash payment of $38,000 to PEN shareholders and the issuance of 300 million fully paid AUH shares, subject to a six-month voluntary escrow.
Future Plans
Upon completion of the acquisition, AustChina plans to initiate targeted exploration at the Sulphide Creek project, including data compilation and a LIDAR survey. The company aims to commence maiden drilling programs within six months, pending exploration results and approvals. If granted, extensive soil sampling, rock chip litho-geochemistry, and an airborne EM survey will be conducted at the Mersey Project to identify massive sulphide targets.
Executive Comments
Chief Executive Officer Andrew Fogg stated, “We are pleased to have successfully completed due diligence over both the Sulphide Creek and Mersey Projects. The due diligence process has confirmed our positive view of the project portfolio, and we now look forward to completing the acquisition and commencing targeted field work programs. Both projects have strong exploration upside in high-demand commodities – gold and antimony – plus VMS base metals potential including copper, and are located in long-established, active mineral belts in Tasmania.”
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