Eastern Metals Limited (ASX: EMS) has announced a binding agreement to sell its Browns Reef Project tenements to Australian Gold and Copper Ltd (ASX: AGC). Eastern Metals, a company focused on mineral exploration and development, with a portfolio of projects, including base and precious metals, anticipates that the sale will require shareholder approval under Chapter 11 of the ASX Listing Rules. The Browns Reef Project includes four NSW tenements (EL6321, EL9136, EL9180 and EL9565) located adjacent to AGC’s existing South Cobar Project.
Under the terms of the agreement, AGC will pay Eastern Metals an immediate cash deposit of A$200,000. The balance of A$1,300,000 will be paid in AGC ordinary shares upon completion, at an issue price equivalent to AGC’s 5-day VWAP prior to the Completion Date. The cash deposit is non-refundable unless EMS fails to hold a general meeting to approve the tenement sale before 31 October 2025. Following completion, EMS will make an in-specie distribution of AGC shares to the value of A$700,000 to existing EMS shareholders.
The company expects that the sale will provide an immediate benefit of approximately 0.5 cents per share for existing EMS shareholders. Shareholders will retain their exposure to the Browns Reef Project and any synergies from the combination of this Project with AGC’s existing South Cobar Project assets. EMS will retain the balance of A$600,000 in AGC shares as an ongoing strategic investment, which EMS expects will be escrowed for six months.
The sale is expected to be completed following shareholder approval at a general meeting anticipated to be held in the second half of September 2025. The meeting will also address the Raptor Transaction, details of which were announced on 24 April 2025 and updated on 11 July 2025. EMS remains committed to the Raptor Transaction, valuing EMS shares at 1.0 cent per share prior to an anticipated two for one share consolidation.
