AGC Expands South Cobar Tenure by 1,269 km² with Browns Reef Acquisition

Strategic Expansion in South Cobar

Australian Gold and Copper Ltd (ASX, AGC) has taken a decisive step to broaden its exploration footprint in New South Wales by signing a binding agreement to acquire the Browns Reef Project from Eastern Metals Limited (ASX, EMS). This acquisition adds a substantial 1,269 square kilometres of highly prospective tenements adjacent to AGC’s existing South Cobar Project, effectively doubling its landholding in the region to 2,600 square kilometres.

The Browns Reef Project is not just a land grab; it is an advanced-stage exploration target with a rich history of over 24,000 metres of drilling. Previous work has revealed significant silver, gold, and base metal mineralisation along a 6.5-kilometre strike length, approximately ten times the size of AGC’s current Achilles deposit footprint. This extensive drilling history provides a valuable foundation for AGC’s planned exploration activities.

High-Grade Mineralisation and Exploration Potential

Browns Reef exhibits exceptional mineralisation, including high-grade silver, gold, lead, zinc, and copper intercepts. The project features a 6.5-kilometre-long alteration zone with silicified, pyritic, and ferruginous outcrops mapped adjacent to the Woorara Fault, with large portions remaining untested by drilling. AGC sees strong geological and mineralogical synergies between Browns Reef and its Achilles discovery, particularly in the style of mineralisation and structural setting.

AGC’s Managing Director, Glen Diemar, highlighted the growth potential, "There are large gaps where additional mineral inventory will be targeted. We will initially focus drilling on the silver-gold rich northern prospects, Evergreen and Kelpie Hill, aiming to deliver a maiden resource that complements our Achilles deposit." This approach leverages AGC’s recent exploration insights, promising a smarter and faster pathway to resource definition.

Transaction Structure and Shareholder Implications

The acquisition deal involves a $200,000 deposit paid upon agreement execution, followed by the issuance of $1.3 million worth of AGC ordinary shares at completion, priced based on AGC’s five-day volume-weighted average price prior to completion. Additionally, EMS will distribute $700,000 worth of AGC shares in-specie to its shareholders, effectively bringing new investors onto AGC’s share register.

Completion is contingent upon EMS shareholder approval at a general meeting anticipated in late September 2025, alongside necessary regulatory consents. This structured transaction aligns the interests of both companies’ shareholders and supports a smooth transfer of tenement ownership.

Looking Ahead, Exploration and Market Context

AGC’s acquisition comes at a time of historically strong precious metals prices and underutilised processing capacity in the Cobar Basin, enhancing the commercial attractiveness of the project. The company plans to conduct further drilling and geophysical surveys to unlock Browns Reef’s full potential, with a focus on advancing towards a JORC-compliant resource estimate.

This move consolidates AGC’s position as a dominant tenement holder in the Rast Trough of the Cobar Basin, a region known for its polymetallic volcanogenic massive sulphide and sedimentary exhalative deposits. The Browns Reef acquisition is a clear signal of AGC’s commitment to growth and value creation through strategic exploration.