Kingfisher Mining (ASX:KFM) has entered a binding agreement to acquire Austin Metals’ (ASX:AYT) portfolio of copper, gold, silver, lead, and zinc projects in New South Wales. Kingfisher Mining is an exploration company focused on discovering and developing mineral deposits. Austin Metals is involved in mineral exploration and development, focusing on copper, gold, and other base metals.
The acquired tenement package consists of 11 tenements covering 700 square kilometres in the Broken Hill, Cobar, and Macquarie Arc regions. As per the agreement, Kingfisher Mining has paid $200,000 in cash and issued $200,000 worth of shares, subject to shareholder approval.
To fund exploration on the newly acquired New South Wales projects, and for ongoing evaluation of the Mick Well Rare Earth Element Project, Kingfisher Mining is undertaking a placement to raise $520,000, along with a rights issue aiming to raise up to $1.33 million. CPS Capital Group has been appointed as the lead manager for the placement.
Under the placement, shares will be issued at $0.04 each, accompanied by one free-attaching option, exercisable at $0.10 with a three-year expiry, for every two shares subscribed. The pro-rata non-renounceable entitlement offer will issue one share for every two existing shares held, at the same issue price as the placement, with subscribers also receiving one free-attaching option for every two new shares. The company intends to prioritise near-term drill targets, particularly at the Copper Blow prospect in Broken Hill, NSW, with the potential for near-term resource estimation.
