Clara Resources (ASX:C7A) has executed a binding term sheet to acquire AU SB Minerals (AUSB), providing the company with whole access to the Hodgkinson Basin Gold Project in Far North Queensland.
The company will issue AUSB 533.33 million shares for the acquisition, as well as a staged consideration of $1.25 million.
The acquisition is subject to Clara satisfying due diligence conditions, transferring the tenement, executing definitive agreements, and gaining shareholder approval.
AUSB will become a wholly owned subsidiary of Clara upon completion of this acquisition, allowing Clara access to AUSB’s options with Brian Wallace and privately held Queensland Mining.
Clara is proposing to exercise these options, which both have an option period of 60 days from 10 November 2025.
Key terms of the Brian Wallaxce option includes an extension fee of $20,000 cash and an exercise fee of $500,000 cash, with a tenement transfer payment of $500,000 cash.
Key terms of the Queensland Mining option includes an extension fee of $10,000 cash and an exercise fee of $100,000 cash, with a tenement transfer payment of $150,000 cash.
Managing Director Peter Westerhuis describes the Hodgkinson Basin as a “world-class gold province that has been overlooked for many years”.
“The historical high grade drill results, combined with the extensive strike length of the mineralised system, gives us great confidence in the potential of this project,” Westerhuis says.
“We have a clear strategy to rapidly unlock this potential through a systematic and aggressive exploration program in 2026.
“This will be a very exciting year for Clara as we simultaneously progress the Ashford Coking Coal Project to Prefeasibility Study status.”
The Hodgkinson Basin Project spans a total area of 265km2 and sits around 90km west of Cairns. The tenements are located within the Hodgkinson province, which has historically produced more than 1.6 million ounces of gold at the namesake and Palmer River goldfields in the late 1800s and early 1900s.
Write to Maddison Elliott at Mining.com.au
Images: Clara Resources
