Ann: Strategic Acquisition of Precious and Base Metals Portfolio, page-3

Summary of Kingfisher Mining ASX Announcement (25 July 2025)

Kingfisher Mining Limited (ASX:KFM) announced:

️ Acquisition of Strategic NSW Project Portfolio

• Acquiring 11 tenements (~700 km²) from Austin Metals Ltd (ASX:AYT) across Broken Hill, Cobar, and Macquarie Arc regions, including:

  • Copper Blow IOCG Project (Broken Hill): historical drill hits up to 6.13% Cu, 4.23 g/t Au

  • West Broken Hill Ag-Pb-Zn prospects: high grades, e.g., 10m @ 16.1% Pb+Zn, 29 g/t Ag

  • Wellington Project: near Alkane’s Boda-Kaiser porphyry Cu-Au system

  • Tindery Gold Project: early-stage gold targets on the Chesney Fault

Acquisition cost:

• $200k cash + $200k in KFM shares (4 million shares based on 5-day VWAP)

Capital Raising

• $520k placement to sophisticated investors at $0.04/share, with 1:2 free-attaching options (ex. $0.10, 3-year expiry)

• Rights Issue to raise up to $1.33M on same terms (1 share for every 2 held + 1:2 free options)

Use of Funds

• Exploration on new NSW assets

• Ongoing work at Mick Well REE project (Gascoyne, WA)

• Working capital and capital raising costs

Strategic Rationale

• Diversifies KFM’s portfolio from REEs (which have faced market headwinds) into copper, gold, silver, lead, zinc

• Entry terms considered favourable

• Copper Blow seen as near-term JORC resource candidate

✅ Assessment: Is This Good News?

Yes — broadly positive, with key benefits and manageable risks:

✔️ Positives:

• High-grade historic results: Drill hits at Copper Blow and Allendale are excellent for early-stage exploration.

• Low acquisition cost: $400k total is a modest outlay for 11 tenements in proven mineral belts.

• Diversification: Reduces exposure to struggling REE market while maintaining upside at Mick Well.

• Capital structure remains tight: Post-deal, total shares = ~104M; still relatively low for a junior.

• Potential for near-term value catalysts: especially via a maiden resource at Copper Blow.

⚠️ Caveats:

• Early-stage projects: No JORC resources yet; success depends on future drilling.

• Exploration risk: Historical results are promising, but new work is needed to validate targets.

• Dilution: Rights issue and placement will dilute current shareholders (but offer options as sweetener).

• Regulatory approvals pending: Some tenements require renewal/transfer finalisation.

Verdict:

Good news for speculative investors.
Kingfisher is picking up a strong pipeline of projects at low cost, with the potential for near-term discovery success at Copper Blow. The capital raise is relatively modest and well-structured, and the portfolio pivot is well-timed given the REE market conditions.

*gpt4o