SYDNEY: Australian Gold and Copper Ltd has agreed to acquire the Junee Gold Project in New South Wales, adding seven drill-ready targets to its exploration portfolio in one of the state’s most prolific gold belts.
The ASX-listed company will issue 30 million shares, valued at approximately $5.4 million, to acquire 100% of New South Resources Pty Ltd, the private owner of the project located about 230 kilometers south of AGC’s existing South Cobar Project, a statement said.
The Junee Project lies within the Junee-Narromine Volcanic Belt, a mineral-rich district that hosts Evolution Mining’s 14 million-ounce Cowal gold mine and neighbors Newmont’s Cadia Valley operations.
Managing Director Glen Diemar said the acquisition provides immediate discovery potential for large-scale gold systems.
“Newmont, the world’s largest gold producer, continues to actively explore this belt around the Junee Project after a decade, cementing our confidence in this project,” Diemar said in a statement.
The project has seen more than $10 million in exploration spending since 2017 by major companies including Freeport-McMoRan and Newmont, with New South Resources acting as operator. The tenements are now unencumbered, with no royalties or buybacks attached.
Priority targets include the Dobroyde epithermal deposit, which has returned multiple high-grade intercepts including 64 meters at 13.5 grams per tonne of gold from 50 meters depth. The Burringa copper-gold-molybdenum system, Macaulies Ridge, Forest Hill and Stanyers are also identified as drill-ready targets.
In conjunction with the acquisition, AGC has secured commitments for a $5 million two-tranche placement to fund continued drilling at its Achilles and Evergreen projects while accelerating work at Junee.
The consideration shares include 16,533,000 shares subject to escrow, half for six months and half for 12 months. Completion is expected in early July, subject to shareholder approvals.
AGC Managing Director Glen Diemar holds a related-party interest in the transaction, with 3,609,000 consideration shares requiring separate shareholder approval.
Drilling at Junee is scheduled to begin in the coming months once permits are received.
