Australian Critical Minerals acquires ‘high-impact’ Tier 1 copper-gold-silver-lithium projects in Peru

Australian Critical Minerals (ASX: ACM) has entered into a share purchase agreement to acquire exploration company Circuit Resources, which owns a suite of copper-gold-silver-lithium projects at highly prospective locations in Peru.

The projects — including Bianca and Flint (gold), Riqueza (copper-silver), Cerro Rayas (zinc-lead-silver) and Liro and Kamika (lithium brine) — are in a region known for its copper-gold production.

They also have potential for significant high-grade silver and base metals exploration upside.

‘High-impact projects’

Managing director Dean de Largie said the deal would be potentially transformational for the company.

“Circuit Resources is a significant opportunity that delivers a pipeline of high-impact exploration projects across gold, copper, silver, zinc and lithium in a Tier 1 location,” he said.

“The scale of these assets spans over 250 square kilometres and gives us immediate drill-ready targets with exceptional scope for new discoveries.”

Aggressive exploration

Australian Critical Minerals believes the acquisition will significantly strengthen its portfolio.

“We are excited to begin unlocking value with aggressive exploration in the near term,” Mr de Largie said.

“Riqueza has high-grade copper-silver veins over several kilometres and is proximal to major operators such as Anglo American, [while] Bianca has already demonstrated strong gold mineralisation and Cerro Rayas provides exposure to critical metals with potentially strong demand tailwinds.”

Share consideration

Australian Critical Minerals will pay Circuit a consideration of 45 million shares for the Peru projects.

Approximately 17 million of these shares, along with 5 million quoted options and 5 million performance rights, will go to Mr de Largie, who holds a 37.84% interest in Circuit.

Sandton Capital Advisory — which holds 10% equity in Australian Critical Minerals and 18.29% in Circuit — will receive 8.2 million of the consideration shares.

Further to this, Australian Critical Minerals has agreed to provide a $50,000 loan to Circuit to support its working capital requirements prior to completion.

Capital raising

Australian Critical Minerals has received firm commitments to raise $1 million via a two-tranche placement to advance the Peruvian portfolio with initial exploration and technical studies.

The placement will have an issue price of $0.055 per share, with participants to receive one free attaching unlisted option for every two shares held.

Directors Michael Wright and Gary Brabham have each subscribed for $10,000 worth of shares.