Australian Gold and Copper secures investment from Delin Mining Group
Australian Gold and Copper Ltd (ASX: AGC) has announced a binding Subscription Agreement with Delin Mining Group Cooperation Limited. In this deal, Delin Mining Group will acquire 122,222,222 new fully paid ordinary shares at a price of A$0.082636 per share. This arrangement, pending shareholder approval, will inject A$10.1 million in capital into the company, significantly enhancing Australian Gold and Copper’s financial standing.
Australian Gold and Copper Chairman and Delin Mining Group Chairman Share Perspectives
Australian Gold and Copper Chairman David Richardson stated: “In the current climate where the cost of capital is high, this investment represents exceptional value for all our shareholders. 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 Mining Group Chairman, Zhang Yong, also weighed in on the partnership: “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.”
Exploration Efforts in the Cobar Basin
Currently, Australian Gold and Copper is in the exploration phase, focusing on gold-copper deposits in the Cobar Basin. The area is also home to the high-grade CSA copper mine. The Australian Gold and Copper Board has given a nod to a maiden drill program that will test the high priority Hilltop Target. The commencement of this drill program is planned to align with the completion of the Strategic Investment.
Future Plans for South Cobar and Beyond
Apart from bolstering the company’s South Cobar Project, the Strategic Investment also paves the way for Australian Gold and Copper to explore four other drill-ready South Cobar targets identified at Achilles and Planet. Funds from the issuance of Placement Shares will also be allocated towards advancing Australian Gold and Copper’s other projects in New South Wales, as well as supplementing general working capital and other ancillary purposes.