- AuStar Gold is set to purchase Centennial Mining, increasing its presence in the Victorian gold scene
- The company will acquire nearby gold mines and processing facilities in the state
- AuStar’s share price remains flat today, closing at $0.0030 per share
AuStar Gold will progress with purchasing Centennial Mining in a bid to strengthen its position as a Victorian gold producer.
Through a merge, AuStar will take full interest in Centennial, gaining all of the fellow gold miners projects.
AuStar’s Chairman Frank Terranova explained regional consolidation is an intergral part to the company’s expansion.
“The potential combination of these assets will accelerate our objective of creating a truly sustainable and scalable gold company within the region,” he said.
Centennial’s flagship project, the A1 Gold Mine, has an exploration target between 300,000 and 500,000 tonnes with a grading of 3.8 to 5.6 grams per tonne of gold.
Additionally, Centennial holds a processing plant in Victoria, capable of producing 150,000 tonnes per year.
AuStar’s Morning Star project is only 15 kilometres from A1, making processing efforts easier.
The company will pay $2.4 million in cash for full ownership of Centennial, with an additional $1.25 million to be subscribed by other parties to the Deed of Company Arrangement.
Furthermore, AuStar will have to complete a capital raise of over $4.4 million to confirm the purchase.
AuStar’s share price remains flat at Tuesday’s market close. Shares in the company are currently worth $0.0030 apiece – the same as yesterday’s closing price.
This is despite spiking and falling over 30 per cent three times throughout the day.