Australian Gold and Copper Ltd (ASX: AGC) has announced a binding agreement to acquire the Browns Reef Project from Eastern Metals Limited (ASX: EMS), further expanding its presence in the South Cobar region of New South Wales. Australian Gold and Copper Ltd is focused on the exploration and development of copper and gold resources. The Browns Reef Project, spanning 6.5km, is adjacent to AGC’s existing South Cobar Project and includes four NSW tenements (EL6321, EL9136, EL9180 and EL9565).
The acquisition will add 1,269km² of exploration tenure to AGC’s portfolio, bringing the total area of the South Cobar Project to 2,600km². According to AGC, Browns Reef is an advanced-stage target with over 24,000m of historical drilling. It exhibits ‘exceptional silver, gold and base metal drill intercepts and drill targets’, with an extensive alteration zone that remains largely untested by drilling. The company also notes numerous synergies with AGC’s Achilles silver gold base-metal discovery.
The transaction involves an initial deposit of A$200,000 paid upon agreement execution. At completion, AGC will issue A$1,300,000 in ordinary shares, priced at the 5-day VWAP prior to completion. Eastern Metals intends to distribute A$700,000 of these shares to its shareholders, which will add new investors to the AGC share register. Completion of the transaction is subject to approval from EMS shareholders at a general meeting anticipated for late September.
Glen Diemar, Managing Director of AGC, stated that the Browns Reef deposit represents a ‘sensible and very attractive growth target’ for the company. He highlighted the potential for defining a maiden JORC resource at the silver-gold rich Evergreen and Kelpie Hill prospects, which would have strong synergies with the Achilles deposit. Diemar also thanked the EMS board and expressed his anticipation in welcoming their shareholders to the AGC register.
