AustChina Holdings (ASX: AUH) has successfully completed due diligence for its acquisition of Penwortham Exploration Pty Ltd (PEN), securing ownership of two highly prospective mineral projects in north-west Tasmania. The acquisition includes the Sulphide Creek Gold-Antimony Project (EL16/2022) and the Mersey Volcanogenic Massive Sulphide (VMS) Base Metals and Gold Project (EL6/2021, under application).
The company has waived the condition requiring EL6/2021 to be granted before proceeding with the transaction. Under the agreement, AustChina will pay $38,000 in cash and issue 300 million AUH shares to PEN shareholders, subject to a six-month voluntary escrow period. The shares will be issued under AustChina’s existing placement capacity in accordance with ASX Listing Rule 7.1.
Following completion of the acquisition, AustChina plans to commence fieldwork at Sulphide Creek, with maiden drilling programs expected within six months, pending exploration results and regulatory approvals. The company will also conduct LIDAR (Light Detection and Ranging) surveys to map historic workings and structural features, along with geological, geochemical, and geophysical studies.
CEO Andrew Fogg highlighted the exploration potential of the projects, stating that both assets are located in long-established mineral belts with strong upside potential for gold, antimony, and copper. Once the Mersey Project is granted, AustChina plans to initiate soil sampling, rock chip geochemistry, and airborne electromagnetic (EM) surveys to define drill targets.
AustChina Holdings is an Australian exploration and investment company focused on energy and mineral resource projects. The company is actively expanding its portfolio to capitalise on high-demand commodities such as gold, base metals, and critical minerals.
