Augustus Minerals (ASX:AUG) Acquires ACMPNG and Advances Mt Kare Gold Project License
Acquisition Agreement
Augustus Minerals Limited (ASX:AUG) has executed a binding share purchase agreement to acquire 100% of ACM Contract Mining PNG Ltd for $250,000 cash. This acquisition grants Augustus control over ACMPNG, which holds a valid third in line license application for the Mt Kare Gold Project in Papua New Guinea.
Mt Kare Gold Project
The Mt Kare Gold Project boasts a historical mineral resource of 43Mt at 1.5 g/t Au for 2.1 Moz gold and 18 Moz silver. Located in the Enga Province, the project is considered one of the premier gold development opportunities in the Australasia-Pacific region. The acquisition provides a strategic opportunity for Augustus to develop this significant asset.
License Application Process
The Mt Kare license application is contested by two prior applicants. ACMPNG, as the third in line, will have the opportunity to object to previous applications based on specific grounds. The application process is overseen by the Papua New Guinean Mineral Resources Authority and is expected to be completed within six months, though complexities may extend this timeline.
Future Plans
Following the acquisition, Augustus intends to actively pursue the license grant, including potential collaborations with other applicants. The board believes the transaction represents excellent risk-weighted value and looks forward to progressing legal avenues to secure tenure, complete feasibility studies, and initiate development activities.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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