Aussie cobalt acquisition sends Victory Mines shares into orbit
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Victory Mines shares tripled on Tuesday after the junior explorer agreed to buy the owner of four potential cobalt and scandium sites.
Under the deal, Victory (ASX:VIC) will acquire highly prospective cobalt and scandium ground in New South Wales and Western Australia through the purchase of privately-held Cobalt Prospecting.
After the announcement, Victory’s shares surged to a 52-week high of 3c — up 200 per cent — before dipping slightly to 2.7c, up 170 per cent.
Two of the NSW tenements – Husky and Malamute – lie 15km west of Dubbo and close to tenure owned by market darlings Clean Teq and Australian Mines.
Husky’s tenure is close to Australian Mines sites and within 5km of Clean Teq’s project.
The two WA projects – yet to be granted – are called Peperill Hill and Galah Well. Both lie 100km west of Leonora in an area with proven cobalt mineralisation.
Previous assay results show 2430 parts per million cobalt at Galah Well tenure and 7290 parts per million cobalt just outside Peperill Hill tenure.
Victory will issue 357 million ordinary shares and 143 million performance shares to convert to a Victory share on the reporting of intersections of a minimum 600 parts per million cobalt or 200 parts per million scandium.
Victory will also issue 179 million options to acquire Victory shares, grant a 2 per cent net smelter return royalty and pay $200,000 to cover costs of establishing and maintaining the project areas.
The company is also seeking to raise $2.1 million.
The acquisition is expected to be completed next month.