AustChina Locks in High-Grade Gold-Antimony Projects in Tasmania Acquisition
AustChina Holdings has entered a binding agreement to acquire Penwortham Exploration, gaining access to promising gold-antimony and base metals projects in Tasmania’s prolific mining districts. The move positions AustChina to leverage modern exploration techniques on historically rich targets.
- Binding agreement to acquire Penwortham Exploration Pty Ltd
- Acquisition includes Sulphide Creek Gold-Antimony and Mersey VMS Base Metals projects
- Historic high-grade antimony sample of 66.6% Sb at Rinadeena Prospect
- Plans for maiden drilling within six months post-acquisition
- Consideration involves $25,000 cash plus 300 million AUH shares under escrow
Strategic Acquisition Expands AustChina’s Portfolio
AustChina Holdings Limited (ASX: AUH) has taken a decisive step to broaden its mineral exploration footprint by entering into a binding heads of agreement to acquire Penwortham Exploration Pty Ltd (PEN). This acquisition brings under AustChina’s control a portfolio of gold-antimony and base metals projects situated in the world-renowned mining districts of north-west Tasmania.
The deal includes two key assets: the Sulphide Creek Gold-Antimony Project located in the Tier-1 Queenstown mining district, and the Mersey Volcanogenic Massive Sulphide (VMS) Base Metals and Gold Project. Both projects lie within active mineral belts with a rich history of mining success, offering AustChina exposure to high-demand commodities such as gold, antimony, and copper.
Historic High-Grade Antimony and Gold Potential
One of the standout features of the Sulphide Creek Project is the historic Rinadeena Prospect, where a Geological Survey of Tasmania sample recorded an exceptional antimony grade of 66.6% Sb. This high-grade antimony occurrence, alongside historic gold workings reporting grades up to 14 g/t Au, provides a compelling exploration target. AustChina intends to apply modern exploration techniques to this under-explored area, aiming to validate and expand upon these historic findings.
The Mersey Project, covering 203 square kilometres, is strategically positioned within the Mount Read Volcanics, a geological setting analogous to world-class VMS deposits like Hellyer and Rosebery. Historic exploration data and recent advances in understanding VMS systems underpin AustChina’s confidence in the project’s potential, particularly around gold prospects with recorded historic workings dating back to the 1890s.
Planned Exploration and Shareholder Value Creation
Following completion, AustChina plans to initiate targeted fieldwork programs at both projects, including detailed data compilation, surface geochemistry, geophysics, and LIDAR surveys to map historic workings and key structures. The company aims to commence maiden drilling within six months, subject to exploration results and regulatory approvals.
The acquisition consideration comprises a modest cash payment of $25,000 to PEN shareholders, primarily to reimburse prior costs, alongside the issuance of 300 million fully paid AustChina shares valued at $0.001 each. These shares will be subject to a six-month voluntary escrow, aligning vendor interests with AustChina’s medium-term growth objectives.
Context and Market Implications
Antimony’s classification as a critical mineral by several governments, including the USA, EU, Australia, Canada, and Japan, highlights the strategic importance of the Sulphide Creek Project’s antimony potential. With China’s export restrictions tightening supply, AustChina’s entry into this market segment could position the company advantageously amid rising global demand.
CEO Andrew Fogg emphasised the acquisition’s strategic fit, noting the projects’ location in prolific mineral belts and their significant exploration upside. The move signals AustChina’s commitment to diversifying its commodity exposure and enhancing shareholder value through disciplined exploration and development.
Bottom Line?
AustChina’s acquisition marks a pivotal expansion into critical minerals, setting the stage for exploration-driven growth in Tasmania’s prolific mining heartland.
Questions in the middle?
- What initial exploration results will AustChina report from Sulphide Creek and Mersey projects?
- How will the market respond to the dilution impact of 300 million new shares issued?
- What are the timelines and likelihood for granting EL6/2021 to complete the acquisition?
