Augustus Minerals (ASX:AUG) executed a binding share purchase agreement with ACM International to acquire 100% of the issued capital in ACM Contract Mining PNG for AU$250,000 in cash, according to a Friday Australian bourse filing.

ACM Contract Mining is an entity incorporated in Papua New Guinea, which holds a valid third-in-line license application for the Mt. Kare gold project.

The agreement is subject to due diligence. There is no guarantee that the application will lead to a licence being granted.

On completion, the firm plans to actively pursue the application and grant of an exploration license at the project.

Its shares rose 13% in recent trading on Friday.