Photo by: Bloomberg
PERTH (miningweekly.com) – Junior Australian Gold and Copper (AGC) has unveiled a major new shareholder in Hong Kong-based Delin Mining Group Corporation.
AGC on Thursday revealed a A$10.1-million investment from Delin, with the company subscribing for more than 122.2-million new shares at a price of 8.2c each.
The subscription agreement would give Delin a 55% interest in the issued share capital of AGC, subject to due diligence, and shareholder and regulatory approvals.
“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,” said AGC chairperson David Richardson.
AGC is currently searching for gold/copper deposits in the Cobar basin, which is host to the high-grade CSA copper mine. AGC’s board has approved a maiden drill programme to test the high-priority Hilltop target. This programme is now planned to commence on completion of the strategic investment.
On completion of the investment, Delin chairperson Zhang Yong will be appointed as co-chairperson of the AGC board. The new shareholder will also be able to nominate for appointment 50% of the board of directors of AGC.