Junior explorer Australian Gold and Copper (AGC) has received a $10.1 million capital investment by Delin Mining Group Cooperation, which will help fuel the company’s exploration efforts in the Cobar Basin in NSW.
AGC has entered into a binding subscription for the sale of 122,22,222 new fully paid ordinary shares to Delin, a Hong Kong investor. Following completion of the placement, and subject to shareholder approval, Delin will hold 55 per cent of the issued share capital in AGC.
The transformative cash injection will help fund aggressive exploration of AGC’s portfolio in the Cobar Basin in NSW, an area rich in multiple commodities.
AGC has five drill ready targets at its South Cobar gold project. South Cobar sits within the prospective Rast Trough of the Cobar Basin in the Central Lachlan Fold Belt.
Cobar has hosted multiple significant discoveries, including Aurelia Metals’ high-grade polymetallic Peak mine. The mine produced over 36,000 ounces of gold in the 2023 financial year.
And notably, Metals Acquisition Corporation purchased Glencore’s CSA copper-gold mine, also located in the Cobar Basin, for over $US1 billion.
“In the current climate where the cost of capital is high, this investment represents exceptional value for all our shareholders,” AGC chairman David Richardson said.
“The significant premium to market price is clear evidence of the attractiveness of the drill ready targets in our South Cobar project. We look forward to this transformational strategic investment and welcome Delin as a new major shareholder.”
Delin chairman Zhang Yong, who now sits on AGC’s board as co-chairman, echoed a similar sentiment.
“We are pleased to make this strategic investment in AGC and are excited about AGC’s portfolio of exploration projects. We look forward to supporting AGC to further the advancement of these gold projects, and to providing a bridge between the Australian mining industry and Southeast Asia in the future together with AGC.”