AngloGold Ashanti is expanding its exploration in New South Wales, Australia. The gold miner advanced four copper/gold projects to the next phase.
These projects belong to Inflection Resources, a Canadian exploration company. AngloGold Ashanti committed further investment under an earn-in agreement.
The decision follows the completion of Phase 1. The Johannesburg-based miner invested A$10-million in Inflection’s exploration portfolio.
Now, Phase 2 has started. AngloGold Ashanti can secure a 51% interest in four projects. These include Duck Creek, Trangie, Crooked Creek, and Nyngan. The company will spend A$7-million on each project over three years.
More Investment and Exploration Plans
Inflection CEO Alistair Waddell said, “The completion of the Phase 1 agreement with AngloGold Ashanti is a major milestone for the company. We are extremely pleased that AngloGold Ashanti has selected four projects to advance to Phase 2 as this will provide the necessary capital to drill and potentially develop these projects within the northern extension of the Macquarie Arc.”
AngloGold Ashanti has also exercised its right to acquire a 9.9% equity stake in Inflection. The company will issue 11.13-million shares at C$0.808 per share. Step-out drilling at the Trangie project has already started. The company is targeting gold and copper deposits identified earlier this year.
Under the agreement, AngloGold Ashanti can increase its stake further. In Phase 3, it can reach 65% by funding A$20-million more per project. Phase 4 allows the miner to secure another 10% by completing a prefeasibility study. It must also grant Inflection a net smelter return royalty of up to 2%.
The remaining projects from the initial agreement will stay with Inflection. AngloGold Ashanti has relinquished its rights to those assets. This move aligns with its strategy to expand its copper and gold exploration in Australia. The company is also strengthening its partnership with junior mining firms.