AuStar Gold Ltd. terminated its acquisition of under administration Centennial Mining Ltd. and its unit Maldon Resources Pty. Ltd., saying it was unable to satisfy its own due diligence requirements.
The company was looking to secure the A1 gold mine and the Maldon cyanide-in-leach processing plant in Victoria, Australia.
The acquisition was derailed after AuStar's agreement to purchase all debt owed by Centennial and its unit toward major secured creditor Mining Lending Pty. Ltd. failed to advance.
The company said Jan. 21 that it will keep its focus on existing operational and exploration assets and continuing to review other growth initiatives.
AuStar is also withdrawing its December 2019 placement and entitlement offer to raise up to A$7.5 million, and a subscription offer looking to secure funding for the acquisition and to satisfy the additional capital raising condition.
The company intends to issue a new prospectus to raise capital for the ongoing development of its existing tenement portfolio through exploration and mine development, it noted.