Kingfisher Mining (ASX:KFM) has entered into a binding agreement with Austin Metals (ASX:AYT) for acquiring its portfolio of copper, gold, silver, lead, and zinc projects in New South Wales.
The tenement package comprises 11 tenements covering 700km2 in the Broken Hill, Cobar, and Macquarie Arc regions.
Kingfisher paid $200,000 cash and issued $200,000 worth of shares, subject to shareholder approval.
The company is also conducting a placement to raise $520,000, as well as a rights issue to raise up to $1.33 million. The funds will be used for exploration on the New South Wales projects, and continuing evaluation of the Mick Well Rare Earth Element Project.
CPS Capital Group has been engaged to act as lead manager to the placement.
Under the placement, shares will be issued at $0.04 per share, together with one free-attaching option exercisable at $0.10 and a three-year expiry data, for every two shares subscribed for.
Under the pro-rata non-renounceable entitlement offer, one share will be issued to participants for every two existing shares held at the same issue price as the placement. Each subscriber will also be entitled to receive one free-attaching option for every two new shares subscribed for.
Non-executive Chairman Scott Huffadine says the acquisition represents a “compelling” opportunity with access to a strategic asset portfolio, while still providing the option value on the Gascoyne region.
The company intends to begin landholder and stakeholder engagement in advance of on-ground field assessment and follow-up exploration programs. The focus will be on prioritising near-term drill targets across the projects, particularly at the Copper Blow prospect.
Kingfisher notes there is the nearest term potential for generation of a resource estimate at Copper Blow, which is located in Broken Hill, New South Wales.
Write to Aaliyah Rogan at Mining.com.au
Images: Kingfisher Mining
