Austin Metals has also raised $1.5m via a share placement to fast-track exploration activities at the Ashburton gold project. Pic via Getty Images
Mining
Special Report: Austin Metals adds another string to its bow with the acquisition of the high-grade Ashburton copper-gold project in WA’s Pilbara region.
Base and precious metals explorer Austin Metals (ASX:AYT) has entered into a binding agreement with Gardner Mining to acquire the Ashburton copper-gold project, about 75km southwest of Paraburdoo and 90km from Black Cat Syndicate’s (ASX:BC8) Paulsens gold mine.
AYT believes the project, while underexplored, is highly prospective due to the presence of a 1.2km long zone of outcropping copper and gold mineralisation, including a “spectacular” 12m at 12.5 g/t copper and 1.7% copper trench result.
Another trench result was also returned, including 13m at 4.1% copper and 0.3 g/t gold.
As well as the trench results, rock chip sampling involving the collection of 19 samples at the Donnellys prospect returned grades of up to 14% copper, with an average of 5.7% copper and 1.9 g/t gold.
Ashburton comprises eight granted exploration tenements and one granted prospecting licence over some ~510km2 on Ashburton Downs Station.
AYT says the project is easily accessed via a series of station tracks from the Ashburton Downs Station Road.
The agreement with Gardner, an exploration company controlled by Darren White, involves AYT’s 100% interest in exploration licences E08/2997, E08/3104, E08/3120, E08/3121, E08/3222 and E08/3273, and its right to earn a 90% legal and beneficial interest in the earn-in tenements.
Alongside the acquisition, AYT has raised $1.5m via a share placement to institutional and sophisticate investors through the issue of 250m shares at $0.006 per share, with a 1 for 2 free attaching unlisted option exercisable at $0.012 each.
AYT is also inviting existing shareholders to invest in the company via a share purchase plan at the same price as the placement of $0.006 per share to raise up to $500,000.
Eligible AYT shareholders will one receive free attaching option for every two Shares subscribed for and issued under the SPP, pursuant to a prospectus to be dispatched to shareholders in due course.
Funds raised under booth the placement and SPP will be used to conduct exploration activities at Ashburton as well as business development and work capital requirements.
Work programs are currently underway to assist with target generation as well as the planning of a maiden drilling program.
These programs include detailed mapping and geochemical sampling at the Donnelly’s prospect, reconnaissance mapping and geochemical sampling of the broader project area, and a review of geophysics and remote sensing datasets.
This article was developed in collaboration with Austin Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Get the latest Stockhead news delivered free to your inbox.
