Australian Gold and Copper Ltd (ASX: AGC) has announced a binding agreement to acquire the Browns Reef Project from Eastern Metals Limited (ASX: EMS). Australian Gold and Copper is focused on the exploration and development of copper and gold assets in New South Wales. The acquisition significantly expands AGC’s South Cobar Project, adding 1,269 square kilometres of prospective exploration tenure.
The Browns Reef Project comprises four NSW tenements (EL6321, EL9136, EL9180 and EL9565) and is located adjacent to AGC’s existing South Cobar Project. Key benefits of the acquisition include an advanced stage target with over 24,000 metres of previous drilling along a 6.5km strike length. Browns Reef exhibits exceptional silver, gold, and base metal drill intercepts, along with an extensive alteration zone that remains largely untested by drilling. The acquisition also presents numerous synergies with AGC’s Achilles silver gold base-metal discovery in terms of location, style of mineralisation and mineralogy.
The transaction involves an initial deposit of A$200,000. Upon completion, AGC will issue A$1,300,000 in ordinary shares at a price equivalent to the company’s 5-day VWAP prior to the completion date. Eastern Metals will pursue an in-specie distribution of A$700,000 of AGC shares to its shareholders, pending approval at an EMS General Meeting anticipated in late September.
AGC Managing Director Glen Diemar stated that the Browns Reef deposit is an advanced stage target with numerous areas of high-grade mineralisation already drilled. He added that AGC plans to focus initial drilling at the silver-gold rich northern prospects, Evergreen and Kelpie Hill, with the potential to deliver a maiden resource that will have strong synergies with the company’s Achilles deposit. The acquisition is expected to bring consolidation benefits to AGC, with EMS shareholders joining the AGC register.
