AustChina Holdings (ASX:AUH) secures option over Eastern Victorian Goldfield Project to expand critical minerals and gold portfolio

AustChina Holdings Limited (ASX:AUH) has taken a major step to expand its exploration footprint with the execution of a binding Heads of Agreement with First Au Ltd (ASX:FAU).

The agreement grants AustChina an exclusive 19-month option to acquire the Eastern Victorian Goldfield Project, a highly prospective tenement package in Victoria’s East Gippsland region containing gold, base metals and critical minerals including rare earth elements, antimony, tungsten and molybdenum.

AustChina Chief Executive Officer Andrew Fogg outlines the transaction details, the geological significance of the project, and how this opportunity aligns with the company’s growth strategy across Australia.

What makes the Eastern Victorian Goldfield Project strategically important for AustChina?

The Eastern Victorian Goldfield Project represents an important strategic opportunity for AustChina, as it broadens the company’s exposure to one of Australia’s most mineralised regions.

Situated in a geologically fertile part of Victoria with a long history of gold production, the project has strong potential for further discovery at depth.

The portfolio, held under Victorian Goldfields Pty Ltd and Jacquian Pty Ltd, covers ground that is prospective for gold, silver, copper, lead, zinc, rare earth elements, antimony, tungsten and molybdenum.

Previous drilling by First Au confirmed high-grade gold mineralisation within an 8 to 8.5-kilometre corridor of structurally controlled quartz sulphide systems hosted in Ordovician turbidites.

“We are very excited about the opportunity to have an option to acquire the Eastern Victorian Goldfield Project. This represents an excellent exploration opportunity in an established minerals exploration region with very positive geological characteristics.”

If AustChina elects to exercise the option, the acquisition would complement the company’s existing projects, the Sulphide Creek Gold Antimony Project and the Mersey Volcanogenic Massive Sulphide Base Metals and Gold Project in Tasmania, together with the Blackall Coal Project in Queensland.

Collectively, these assets provide AustChina with a broader exploration and development pipeline across multiple commodities and jurisdictions.

Can you explain the structure and terms of the Heads of Agreement with First Au Ltd?

Under the Heads of Agreement, AustChina has secured a conditional and exclusive option to acquire 100 percent of First Au’s wholly owned subsidiaries, Victorian Goldfields Pty Ltd and Jacquian Pty Ltd, which hold the Eastern Victorian Goldfield Project.

The option fee includes a non-refundable payment of 75,000 dollars in cash and the issue of 75 million AustChina shares at a deemed price of 0.002 dollars per share, subject to shareholder approval.

During the 19-month option period, AustChina will retain exclusive rights to the project and commit a minimum of 750,000 dollars to exploration and holding costs.

If AustChina exercises the option, it will pay an additional 200,000 dollars in cash and issue shares to a value of 500,000 dollars based on a 14-day volume-weighted average price less a 10 percent discount.

The agreement is subject to due diligence, renewal of Exploration Licence 6816, a minimum one-million-dollar capital raising, and the receipt of all shareholder and regulatory approvals.

First Au will have the right to nominate a non-executive director to the AustChina board if it maintains a substantial shareholding of more than five percent.

“The acquisition of the Eastern Victorian Goldfield Project would represent a strategic addition to the Company’s existing suite of assets and provide a strong driver for the Company to deliver shareholder value.”

What are the most promising exploration targets within the project area?

The project consists of six granted exploration licences and two licence applications, each representing a distinct geological opportunity.

Haunted Stream licence (EL006816) is the most advanced and will be the primary focus once the option fee is completed. Drilling undertaken by First Au in 2023 confirmed multiple high-grade gold intercepts, including 0.2 metres at 36.88 grams per tonne, 0.5 metres at 21.13 grams per tonne, and 10.7 metres at 3.05 grams per tonne including 2.5 metres at 8.32 grams per tonne.

These results define a mineralised corridor that remains open down-plunge beneath shallow historical workings, offering significant exploration potential.

Other prospects also demonstrate strong geological merit.

Dogwood prospect (EL006977) exhibits porphyry copper-gold potential within the Yeoval tract, characterised by a four-by-two-kilometre alteration and mineralisation footprint where coincident induced polarisation and geochemical anomalies remain untested.

Dargo Block and Snowstorm-Extended licences (EL5422 and EL007335) are interpreted as intrusive-related and dyke-hosted gold systems similar to those at Woods Point and Walhalla, while the Dargo High Plains licence (EL006976) is an early-stage target containing numerous historical alluvial and primary gold workings with minimal modern

exploration. Together, these areas provide AustChina with a range of exploration opportunities across gold and base metal systems.

How does this acquisition align with AustChina’s broader strategy and existing project portfolio?

AustChina’s strategy is to develop a balanced portfolio focused on gold, base metals, critical minerals and energy within stable jurisdictions.

The Eastern Victorian Goldfield Project fits seamlessly into this approach, offering both advanced exploration opportunities and exposure to a region with proven mineralisation and substantial upside potential.

The company’s existing projects, Sulphide Creek, Mersey and Blackall, already provide diversity across commodities and geography.

By incorporating the Eastern Victorian Goldfield Project, AustChina will further strengthen its ability to pursue discovery-driven growth while maintaining a disciplined capital strategy.

“We’re very pleased to have reached this agreement with AustChina, which we see as a positive outcome for both companies. The Eastern Victorian Goldfield Project is a quality exploration asset with strong potential, and we believe AustChina is well positioned to advance it and unlock its value.”

This transaction also reinforces AustChina’s consistent approach to identifying technically sound projects that can be advanced efficiently and responsibly while supporting long-term shareholder returns.

What are the next steps for AustChina following this announcement?

AustChina Holdings immediate focus is on completing due diligence and meeting all conditions of the Heads of Agreement.

These include the renewal of the Haunted Stream licence (EL006816), completion of the required one-million-dollar capital raising, and securing shareholder approval for the share issues linked to the option and future consideration.

Once these conditions are satisfied and the option is exercised, AustChina plans to commence exploration across the highest-priority targets within the project area.

Drill permitting is already in place for parts of the Haunted Stream prospect which allows for immediate mobilisation of drill rigs once the Option Fee is paid. Fieldwork will begin with mapping, surface sampling in other areas within the prospect to assess the extent of the high-grade gold shoots beneath historical workings.

The company will also analyse existing geological datasets to refine additional targets at Dogwood and Dargo High Plains.

“Upon exercise of the Option, we will seek to develop and commence our works programme over the Project and look forward to updating the market on material progress and outcomes over the coming period of time.”

Throughout the option period, AustChina will continue to apply best-practice exploration methods and maintain transparent communication with shareholders as it advances toward its next major milestones.

Looking ahead

AustChina’s entry into the Eastern Victorian Goldfield Project marks a deliberate and strategic expansion of its exploration footprint within Australia’s established mineral belts.

The transaction provides exposure to both high-grade gold and critical mineral potential, positioning the company for future growth through structured, capital-efficient exploration.

As Chief Executive Officer Andrew Fogg emphasises, the company remains focused on executing its strategy with discipline and maintaining momentum across a growing pipeline of quality assets that can deliver sustainable value for shareholders.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.