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Aureka Limited (ASX: AKA) has received overwhelming shareholder support for its acquisition of High Grade Holdings (HGH), clearing a major hurdle in its transition from gold explorer to integrated Victorian gold producer.
At a general meeting on October 23, shareholders voted almost unanimously in favour of the acquisition, which will give Aureka ownership of the producing Fiddlers Creek gold mine and Wedderburn gold processing mill.
The acquisition resolution attracted 51,600,283 votes in favour and just five votes against, representing essentially 100 per cent of votes cast.
All four resolutions presented at the meeting were approved with at least 99.98 per cent support, including resolutions associated with the company’s $5.65 million placement.
Aureka managing director James Gurry described the result as a strong endorsement of the company’s strategy.
“I sincerely thank our shareholders for this overwhelming show of support. Receiving ~100 per cent of votes cast in favour, with just five shares voted against, is an exceptional result and a clear endorsement of our strategy to transition Aureka from explorer to producer,” Gurry said.
The acquisition represents a significant development for Aureka, providing access to an operating underground gold mine and an established processing facility.
The Wedderburn mill is one of only six gold mills in Victoria, offering Aureka a potential processing pathway for mineralisation from its broader portfolio.
“Owning the Wedderburn mill, one of only six gold mills in Victoria, together with the producing Fiddlers Creek mine, gives Aureka current production and a potential processing pathway for our broader Victorian portfolio,” Gurry said.
“We look forward to completing the transaction in the coming days.”
Completion is expected on or around October 30, subject to the satisfaction or waiver of the remaining conditions under the share sale agreement.
Under the transaction, Aureka will pay $2.5 million in cash and issue up to 53,333,334 consideration shares at a deemed price of $0.12 per share.
Consideration shares issued to HGH shareholders holding at least 10 per cent of HGH will be subject to a 12-month voluntary escrow.
The shareholder meeting also approved the issue of 10,625,000 Tranche 2 placement shares, expected to be issued within five business days.
Following completion, HGH nominee Marcus Binks is expected to join Aureka’s board as a non-executive director around December 1.
The transaction adds an operational dimension to Aureka’s existing Victorian gold exploration and development portfolio.
Alongside its expanding Irvine gold resource, the company is advancing opportunities at the nearer-term Comstock project.
Combining Fiddlers Creek, Wedderburn and Aureka’s exploration assets could provide a pathway to integrate resource growth with mining and processing operations.
The immediate milestone is completion of the acquisition, after which attention will turn to how Aureka brings its producing and development assets together to support its longer-term growth ambitions.
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