Shareholder Approval Key as G11 Pursues Major Copper-Gold Portfolio Expansion
G11 Resources has announced a proposed acquisition of Pacific State Metals, adding highly prospective copper and gold projects in Tasmania and New South Wales to its portfolio. The deal includes a significant share issuance and a planned share consolidation, pending shareholder approval.
- Acquisition of Pacific State Metals with key projects in Tasmania and NSW
- Issuance of 183.2 million shares at $0.015 per share to vendors
- Projects include Sedgwick Bluff near Mt Lyell, Packsaddle’s large anomaly, and NW Cobar base metal targets
- Complementary to G11’s existing Koonenberry copper-gold project
- Proposed 10-to-1 share consolidation post-acquisition to optimize capital structure
Strategic Acquisition to Broaden Copper-Gold Portfolio
G11 Resources Limited (ASX – G11) has unveiled plans to acquire Pacific State Metals (Holdings) Pty Ltd, a private company holding several promising copper and gold exploration projects. This move, subject to shareholder approval, is set to significantly expand G11’s footprint in two of Australia’s mineral-rich regions – Tasmania and New South Wales.
The acquisition involves issuing 183.2 million fully paid ordinary shares at a deemed price of $0.015 each to the shareholders of Pacific State Metals. Notably, some shareholders overlap between the two companies, necessitating independent expert review and formal shareholder consent.
High-Potential Projects with Tier 1 Ore Body Prospects
The portfolio includes three key projects. Sedgwick Bluff in Tasmania lies immediately along strike from the world-class Mt Lyell copper mine, a historically significant operation with a substantial mineral resource base. Despite proximity, Sedgwick Bluff remains under-explored, with only 16 diamond drill holes over a 23-kilometre strike length, presenting a compelling opportunity for discovery.
In New South Wales, the Packsaddle project features the newly identified Kings Hill anomaly; a large, untested magnetic and gravity anomaly indicative of potential intrusion-related copper-gold mineralisation. The NW Cobar project targets base metal deposits analogous to the prolific Cobar region, with multiple geophysical anomalies awaiting drill testing.
Complementing Existing Assets and Optimizing Capital Structure
This acquisition complements G11’s existing Koonenberry project in NSW, which hosts a volcanogenic massive sulphide copper deposit with a recently announced JORC Exploration Target. The expanded portfolio enhances G11’s position in copper and gold exploration, targeting globally significant deposits.
To streamline its capital structure following the acquisition, G11 proposes a 10-to-1 share consolidation, subject to shareholder approval. This move aims to align the company’s share count with peer group norms and improve market efficiency, without diluting shareholder interests.
Robust Exploration Backed by Historical and Modern Data
Extensive historical exploration data, combined with recent geophysical surveys; including gravity, magnetic, and passive seismic studies; underpin the prospective nature of these projects. G11 plans to prioritize targets for follow-up with advanced geophysical techniques and drilling campaigns in the coming months.
Independent expert BDO Australia has been engaged to assess the transaction’s merits, ensuring transparency and fairness for all shareholders ahead of the anticipated general meeting in late September 2025.
Bottom Line?
As G11 Resources moves to consolidate and expand, the market will watch closely for shareholder approval and early exploration results that could redefine its growth trajectory.
Questions in the middle?
- How will shareholder sentiment shape the approval of this acquisition and share consolidation?
- What initial drilling results can investors expect from the newly acquired projects in the next 6-12 months?
- How might the acquisition impact G11’s valuation relative to its copper-gold exploration peers?
