Market Herald logo


Be the first with the news that moves the market
  • 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.

AUL by the numbers
More From The Market Herald
Suvo Strategic Minerals (ASX:SUV) - Executive Director, Aaron Banks (left) and Executive Chairman, Robert Martin (right)

" Suvo Strategic Minerals (ASX:SUV) begins drilling at Nova

Suvo Strategic Minerals (SUV) has begun the second phase of drilling at its Nova silica sands project in Western Australia.

" Torian Resources (ASX:TNR) extends Tyrannus gold footprint

Torian Resources (TNR) has extended gold mineralisation at the Tyrannus prospect within the Mt Stirling gold project near Lenora in Western Australia.
Tempus Resources (ASX:TMR) - Non Executive Chairman, Alexander Molyneux

" Tempus Resources (ASX:TMR) hits 33.7g/t gold at Blue Vein

Tempus Resources (TMR) has intersected up to 33.7 grams of gold per tonne (g/t) from the newly discovered Blue Vein.
West African Resources (ASX:WAF) - Executive Chairman, Richard Hyde

" West African Resources (ASX:WAF) to acquire 90pc interest in Kiaka

West African Resources (WAF) has entered into definitive agreements to acquire 90 per cent of the Kiaka gold project from B2Gold and their