Australian Gold and Copper Ltd (ASX:AGC) has completed its transaction with Hong Kong investment company, Delin Mining Group, receiving $10.1 million and issuing 122,222,222 company shares to Delin.
The “transformational” transaction also sees Zhang Yong appointed co-chair of the company, as a nominee of Delin, effective today. Zhang has a long history of investments in Asia in resources and other industries.
The transaction comes as Delin aims to build an investment portfolio across the mining industry, with this being its first investment in Australia.
Alongside Zhang, David Richardson will remain as co-chairman of the board.
Richardson said: “I am delighted to welcome Mr Zhang as Co-Chairman of AGC and look forward to this transformational strategic investment delivering value for all shareholders and being well funded to further develop our NSW gold and copper projects, starting with drilling our Hill Top and Achilles targets at our South Cobar Project.”
Australian Gold and Copper is searching for gold-copper deposits in the Cobar Basin, which is host to the high-grade CSA copper mine.
The company’s board has approved a maiden drill program to test the high priority Hilltop Target (NYSE:TGT), which it had planned to commence on completion of the strategic investment with Delin.
Today’s announcement has seen the company’s share price open over 13% higher on the open this morning.
“Exceptional value for shareholders”
Both Richardson and Zhang commented on the strategic investment when it was first announced in September.
Richardson said: “In the current climate where the cost of capital is high, this investment represents exceptional value for all our shareholders.
"The significant premium to market price is clear evidence of the attractiveness of the drill ready targets in our South Cobar Project. We look forward to this transformational Strategic Investment and welcome Delin as a new major shareholder.”
Zhang Yong said: “We are pleased to make this strategic investment in AGC and are excited about AGC’s portfolio of exploration projects. We look forward to supporting AGC to further the advancement of these gold projects, and to providing a bridge between the Australian mining industry and Southeast Asia in the future together with AGC.”