Aureka Advances into Production with $8.9M Victorian Mine and Mill Acquisition

• Acquisition includes operating Fiddlers Creek mine and Wedderburn mill
• Majority scrip transaction valued at $8.9 million
• Assets have generated positive free cash flow since Q2 2026
• Capital raising of approximately $7.15 million underway
• Performance payments up to $2 million linked to production milestones

Aureka Secures Production Footing with Victorian Mine and Mill

Aureka Limited (ASX:AKA) is poised to transform from explorer to producer with its binding agreement to acquire 100% of High Grade Holdings Pty Ltd (HGH), the owner of the Fiddlers Creek underground gold and silver mine and the Wedderburn Gold Processing Mill in Victoria. The deal, valued at $8.9 million, is structured as a majority scrip, low cash transaction and remains subject to shareholder approval and due diligence conditions.

This acquisition immediately delivers production capability to Aureka, which until now had a portfolio of Victorian gold projects without processing infrastructure. The Wedderburn mill is a licensed facility with a stated capacity of approximately 42,000 tonnes per annum and operates under a granted mining licence, making it one of the few such mills in Victoria. Currently, it processes ore from Fiddlers Creek but runs well below capacity, offering Aureka the opportunity to retain processing margins internally rather than paying third parties.

Complementary Victorian Gold Assets Align for Synergy

The acquisition brings together assets located in close proximity, including the high-grade Fiddlers Creek mine, the Wedderburn mill, and exploration ground around Percydale. These assets complement Aureka’s existing Victorian gold portfolio, which features the flagship Irvine Gold Project with an inferred JORC resource of 398,000 ounces and the St Arnaud Comstock Gold & Silver Project with 56,500 ounces inferred resources. The combined portfolio spans production, development, and exploration opportunities, enhancing Aureka’s scale and operational footprint in the prolific Stawell Corridor.

Core Prospecting, the operator behind HGH’s assets, has a longstanding working relationship with Aureka, having supported geological modelling and exploration planning since 2023. Post-completion, operational leadership will be under Aureka’s recently appointed COO Zane Smith, with HGH founder Toby Houldsworth expected to continue as superintendent and technical consultant, ensuring continuity and local expertise.

Positive Cash Flow and Production Metrics from Ramp-Up Phase

Production at Fiddlers Creek and Wedderburn began in July 2025, with HGH’s unaudited accounts indicating positive monthly free cash flow since Q2 2026. During the ramp-up year to June 2026, the operation achieved an average head grade of 7 grams per tonne, total gold recovery of 416 ounces, and average recoveries around 86%, reaching highs of 91%. The flotation circuit was commissioned in February 2026, and offtake payabilities for gold and silver have typically exceeded 90%.

While these figures reflect historical performance and are not guidance, they demonstrate the production potential Aureka is acquiring. The company has not yet reported a JORC-compliant mineral resource for Fiddlers Creek but plans to undertake the required work post-completion, with publication of resource and reserve estimates included as performance milestones in the transaction.

Transaction Structure and Funding Details

The $8.9 million acquisition consideration consists of $2.5 million cash payable on completion and $6.4 million in Aureka shares issued at $0.12 per share, subject to escrow and orderly sale mechanisms for HGH shareholders. Completion is scheduled shortly after shareholder approval, with conditions precedent including confirmatory due diligence, no material adverse change, and board appointment of an HGH nominee.

To fund the acquisition and support operations, Aureka has secured a $5.65 million placement cornerstoned by significant shareholders, alongside a Share Purchase Plan targeting approximately $1.5 million. The capital raising is priced at $0.12 per share, representing a modest discount to recent trading levels.

Incentive Payments and Board Representation

The deal includes contingent performance payments of up to $2 million payable if specified production milestones are met within three years, including cumulative gold production targets at the Wedderburn mill and publication of resource and reserve estimates. These payments are contractual incentives rather than production forecasts.

HGH shareholders will gain representation on Aureka’s board through the right to nominate one non-executive director, supporting integration and continuity. This reflects the collaborative nature of the transaction and the value placed on the operating team's expertise.

Exploration Upside and Regional Potential

The Fiddlers Creek mine sits within the historically productive Percydale field, which has yielded over 700,000 ounces of gold, primarily from alluvial deposits. Mineralisation remains open along strike and down-plunge, with significant near-mine exploration potential. The surrounding exploration licences cover more than 39 square kilometres, with multiple untested mineralised trends identified.

Combined with Aureka’s existing projects, including Irvine and Comstock, the acquisition creates a Victorian gold platform with production, processing, and exploration capabilities under one roof. This integrated approach may unlock new commercial pathways and operational efficiencies, particularly as Comstock lies less than 50 kilometres from Wedderburn mill, allowing potential processing synergies.

With the acquisition advancing Aureka’s strategy to accelerate early production while growing its flagship projects, the company’s next steps will focus on completing the acquisition, advancing resource definitions, and leveraging the mill’s spare capacity to maximise value.

Bottom Line?

Aureka’s acquisition of operating mine and mill assets marks a pivotal step into production, but delivery hinges on shareholder approval and successful integration of these complementary Victorian gold projects.

Questions in the middle?

• Will Aureka successfully convert Fiddlers Creek into a JORC-compliant resource and expand production sustainably?
• How effectively can Aureka leverage Wedderburn mill’s spare capacity to process its broader Victorian portfolio?
• What strategic moves might follow; will Aureka pursue further bolt-ons or consider divesting non-core assets?