ACDC Metals (ASX: ACDC) has announced a significant expansion of its exploration portfolio with the acquisition of the Mount Jackson epithermal gold project in southwestern Nevada, USA. This move, coupled with a substantial capital raising effort, enhances the diversified exploration company’s precious metals exposure. ACDC Metals focuses on developing strategically important Heavy Mineral Sands and Rare Earth Element projects, alongside expanding gold and silver exploration in both Australia and the United States. CEO Tom Davidson expressed enthusiasm for Mount Jackson, highlighting its high-pedigree location, strong historical results, and the opportunity it presents for shareholders in an underexplored system.
The Mount Jackson Project comprises 48 claims situated near Goldfield, Nevada, within the highly prospective Walker Lane Tectonic Zone, a region historically known for significant gold production. Past exploration by Pegasus Gold and First American Silver identified a low-sulfidation epithermal gold system with historical drilling outlining mineralisation. ACDC Metals will enter a five-year lease and option agreement to acquire up to a 100% interest from Pyramid Lake LLC and Spire Exploration LLC, involving initial payments, an expenditure commitment, and an option exercise payment. The agreement also includes potential milestone payments upon resource definition and production, alongside a 3% net smelter return royalty.
To fund the acquisition and its planned exploration program, ACDC Metals has secured A$936,500 through a placement to sophisticated and institutional investors, issuing 18,730,000 shares at A$0.05 each, with free-attaching options. This will be followed by a non-renounceable pro-rata entitlement issue, aiming to raise up to A$1,561,013 from existing shareholders on similar terms. The capital injection will primarily support the Mount Jackson acquisition and its initial exploration activities, in addition to advancing the company’s existing Australian projects and contributing to general working capital. Mr Davidson affirmed the company’s ongoing commitment to the Goschen Central Project amidst strengthening rare earths demand.
