Eastern Metals Limited (ASX: EMS), a company focused on mineral exploration and development, has entered into a binding agreement with Australian Gold and Copper Ltd (ASX: AGC) for the sale of its Browns Reef Project, situated near AGC’s South Cobar Project in New South Wales. The Browns Reef Project consists of four NSW tenements: EL6321, EL9136, EL9180, and EL9565. The sale is contingent upon shareholder approval under Chapter 11 of the ASX Listing Rules, which Eastern Metals expects to seek at the same general meeting convened for the Raptor Transaction approval.
Under the agreement’s terms, Australian Gold and Copper will provide Eastern Metals with an immediate cash deposit of A$200,000. Upon completion, AGC will issue A$1,300,000 in ordinary shares to EMS, priced at AGC’s 5-day VWAP leading up to the Completion Date. The deposit is non-refundable, unless Eastern Metals fails to hold a general meeting to approve the tenement sale before October 31, 2025.
Following completion of the sale, Eastern Metals intends to distribute A$700,000 worth of AGC shares in-specie to its existing shareholders, before any capital raising associated with the Raptor Transaction. Eastern Metals will retain the remaining A$600,000 in AGC shares as a strategic investment, which is expected to be held in escrow for six months. The company anticipates the sale will provide an immediate benefit of approximately 0.5 cents per share for existing EMS shareholders, while retaining their exposure to the Browns Reef Project and any synergies from the combination of this Project with AGC’s existing South Cobar Project assets.
The sale is expected to finalise after Eastern Metals’ shareholders give their approval at a general meeting, scheduled for the second half of September 2025, where both the tenement sale and the Raptor Transaction will be considered. Eastern Metals remains committed to the Raptor Transaction, in the absence of a superior proposal, which values EMS shares at 1.0 cent per share.
