Eumeralla Resources has entered into a binding heads of agreement in relation to the acquisition of all of the securities in unlisted Australian public company Ausmex Mining Limited, which has a project in South Australia’s mid-north and intends to acquire tenements in Queensland’s Cloncurry region.
Ausmex was incorporated in June 2016 with the principal objective of acquiring assets to explore for and develop a large IOCG or porphyry deposit funded by low risk gold production resources.
It has applied for and been granted an exploration licence covering 980sqkm prospective for gold and copper in the Mount Bryan, Red Banks, World’s End area near Burra in South Australia. It has also entered an agreement to acquire gold/copper tenements or interests in the Cloncurry region of north Queensland.
Ausmex has 11 security holders and its largest shareholder is C4 Shares, which will be entitled to approximately 48.3% or the Eumeralla shares to be issued to the Ausmex vendors. As a consequence of the proposed acquisition, if approved, C4 Shares is expected to hold approximately 27.3% of the listed merged entity.
C4 Shares is controlled by veteran mineral explorer Wayne McCrae who brings more than 40 years’ experience in the Cloncurry Mt Isa mineral field and has detailed knowledge of the Queensland tenements to be acquired if the acquisition proceeds.
Upon completion of the proposed acquisition James Hyndes and Nicole Fernandes will resign from the Eumeralla Board and Andrew Firek, Matthew Morgan and Geoff Kidd will be appointed as directors.
Following completion of the proposed acquisition, the company will change its name to Ausmex Mining Group Limited.
Eumeralla is an emerging ASX-listed metals explorer. It was listed on the ASX on May 3, 2012 for the primary purpose of acquiring and exploring mining projects initially in Mongolia and more recently, Myanmar.
In Mongolia, the licence covers 2786 hectares and encompasses the Chuluun Khoroot tungsten mine, which was active from 1945-1955. The licence area is in northeast Mongolia, about 20km north of the town of Dashbalbar, 850km northeast of Ulaanbaatar and 85km northwest of the Solowevsk-Choibalsan railway.
In Myanmar, the company has three separate JV partners with applications pending for several mining leases. The biggest of which is a 400sqkm concession in Kayah State, which plays host to the historic Mawchi Tungsten mine.