LONDON: Natural resources investment firm Ajax Resources has completed the acquisition of a major gold and copper asset in Argentina, marking a transformative step in its evolution from a listed cash shell to an active exploration company.
The company signed a definitive agreement on May 21 to acquire Puna Metals S.A., the wholly owned Argentine subsidiary of Bezant Resources Plc. Puna holds the mining rights to the Eureka Project, an advanced-stage exploration site comprising 12 licences in Jujuy Province. Historical records indicate that gold and copper extraction at Eureka dates back to Incan times, with intermittent production through the 16th, 17th and 20th centuries.
Ajax purchased Puna for a total consideration of US$220,000, adjusting a previously agreed deferred equity payment to an additional cash amount. All intra-group loans from Bezant to Puna were novated to Ajax as part of the transaction.
The Eureka Project, described by the company as drill-ready, has the potential to evolve into a low-cost mine within 3 to 4 years, contingent on permitting and further development. The site is adjacent to the historical Eureka Mine and has never undergone drilling. Preliminary studies suggest the presence of approximately 620,000 tonnes of copper and 52,000 ounces of gold, though these findings are not JORC-compliant.
On June 17, Ajax raised £1 million through a share issuance to fund exploration activities, including the maiden drilling campaign at Eureka. The fundraising also bolstered working capital, with £330,000 invested by board members in a display of confidence in the company’s future.
Expanding its footprint in northern Argentina, Puna exercised its option on June 19 to acquire Minas La Escondida, a 2,500-hectare mining project located adjacent to Eureka, for US$80,000. The company also entered into conditional terms to acquire the 6,300-hectare La Norteña Licence Area for US$22,500.
Bezant initially acquired Eureka in 2010 for a combined US$8 million but suspended development following board-level changes, a strategic pivot towards Africa, and external challenges including Argentinian macroeconomic instability and the COVID-19 pandemic.
Despite posting a comprehensive loss of £127,145 for the fiscal year ended Feb. 28, 2025, Ajax remains optimistic. The company ended the period with £798,473 in cash and no debt, underscoring disciplined financial stewardship.
With an improving investment climate in Argentina and a bullish global outlook for gold and copper, Ajax views Eureka as a cornerstone in its long-term growth strategy.