Australian Gold and Copper Ltd (ASX:AGC) has declared the “transformational” investment by Hong Kong-based Delin Mining Group Corporation Limited unconditional with all conditions now satisfied or waived and shareholder approval granted.
Both parties have now confirmed that the Share Subscription Agreement entered into on September 20, 2023, is now unconditional with completion slated to occur on Thursday, December 21, 2023.
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A binding agreement with Delin involves a capital injection of $10.1 million through the subscription of 122,222,222 new shares at $0.082636 each, a deal that AGC describes as “transformational”.
The share placement will result in Delin holding a 55% interest in AGC once completed.
Shareholder approval
Being declared unconditional follows AGC shareholders voting overwhelmingly in favour to approve the transaction at the company’s Annual General Meeting on November 28, 2023.
All other conditions precedent under the subscription agreement have been satisfied (or waived).
Delin has advised AGC that it is onshoring in Australia the relevant funds in respect of the agreement, with US$1.5 million committed to be onshored by no later than Thursday, December 7, 2023.
“Transformational” investment
AGC chairman David Richardson said: “We are pleased that the subscription agreement is now unconditional and look forward to closing this transformational strategic investment and welcoming Delin as a new major shareholder.”
The investment from Delin will provide funds for AGC to continue its search for gold and copper deposits in the Cobar Basin of New South Wales, which is host to the high-grade CSA copper mine.
Upcoming drilling
A maiden drill program to test the high-priority Hilltop Target (NYSE:TGT) has been approved to commence as soon as the share placement is completed.
Additionally, the cash injection will allow AGC to aggressively explore four other drill-ready South Cobar targets identified at Achilles and Planet.
The funds raised will also be used to advance AGC’s other NSW projects and for general working capital and any other ancillary purpose.
Delin chairman Zhang Yong will be appointed to the AGC board as co-chairman as soon as the placement is completed.