Kingfisher Mining Limited (ASX:KFM) has announced a binding agreement with Austin Metals Ltd (ASX:AYT) to acquire a portfolio of copper-gold, gold, and silver-lead-zinc projects in New South Wales. Kingfisher Mining is a mineral exploration company committed to increasing value for shareholders through the acquisition, exploration and development of mineral resource projects throughout Australia. The acquired tenement package includes eleven tenements covering approximately 700 square kilometres across the Broken Hill, Cobar, and Macquarie Arc regions. Key projects include the Copper Blow Iron Oxide Copper Gold (IOCG) Project, multiple copper and silver-lead-zinc prospects in Broken Hill, the Wellington Copper Project in the Macquarie Arc, and the Tindery Gold and base metal Project near Cobar.
The Copper Blow IOCG prospect features high-grade copper-gold mineralisation defined by historical drilling over 600 metres of strike. Historical drill results include significant intercepts such as 16m @ 2.67% Cu, 0.62 g/t Au, and 4.04 g/t Ag from 133m. The West Broken Hill area includes multiple silver-lead-zinc prospects near historic mining centres, with high-grade drill results including 10m @ 16.1% Pb+Zn and 29 g/t Ag from 15m at Allendale. The Wellington Copper-Gold Project is located in the Macquarie Arc, 15km from the Boda/Kaiser porphyry-copper deposit. The Tindery Project, north of Cobar, hosts historical gold workings along the Chesney Fault.
The total consideration for the acquisition is $200,000 in cash and $200,000 in Kingfisher shares to be issued to Austin upon completion. According to Kingfisher’s Non-Executive Chairman Scott Huffadine, this acquisition represents a compelling exploration opportunity with access to a strategic asset portfolio, providing exposure to a pipeline of early stage and advanced targets located proximal to a number of world class deposits in three proven mining districts in NSW. The company is also undertaking a capital raising of approximately $1,854,300 through a placement to sophisticated investors and a non-renounceable entitlement issue to eligible shareholders.
The funds raised will be used for exploration on the NSW projects, continued evaluation of the Mick Well REE Project, working capital, and expenses of the placement and rights issue. Kingfisher plans to immediately commence landholder and stakeholder engagement, focusing on near-term drill targets across the projects, particularly at the Copper Blow prospect, with the goal of generating a JORC compliant Mineral Resource Estimate.