There’s still a big appetite for mining acquisitions
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While the market remains volatile, there seems to be no shortage of resource companies acquiring new projects or other companies.
Orocobre (ASX:ORE) is another step closer to acquiring Canada’s Advantage Lithium after the latter’s shareholders approved the $33.8m acquisition.
The company offered Advantage shareholders 0.142 ORE shares for every Advantage share and will issue about 15.1 million ORE shares to complete the acquisition.
The takeover remains subject to approval by the Supreme Court of British Columbia, which will consider the application on April 16.
Acquiring Advantage will give the company control of the Cauchari project, which has a measured and indicated resource of 4.8 million tonnes of lithium carbonate equivalent.
Meanwhile, DiscovEx Resources (ASX:DCX) has secured the right to acquire up to 80 per cent ownership interest in eight tenements that are located predominantly along strike and south of the company’s existing Edjudina gold project in Western Australia’s Laverton district.
The company can earn the interest by completing the minimum expenditure for each tenement as required by the Department of Mines and maintaining the tenements in good standing for a period of two years from execution.
DiscovEx is also required to free carry Crest Investment Group through to a mine decision.
Maiden drilling at Edjudina has returned results of 1m grading 5.3 grams per tonne (g/t) gold from a depth of 51m and 7m at 1.8g/t gold from 40m including 2m at 2.9g/t gold from 44m.
Zenith Minerals (ASX:ZNC) has acquired the Flanagans gold project in Queensland that is just 70km northeast of its Red Mountain gold project.
Flanagans hosts a 1.5km long by 180m wide gold-rich quartz vein zone with strong rock chip results of up to 20g/t gold and very high gold in soils.
Despite this, no drilling has been undertaken at the project, with the last meaningful field work conducted on this area primarily targeting copper about 32 years ago.
The company plans to start confirmatory mapping and sampling at Flanagans as soon as possible and is also committed to completing the postponed maiden drill test of the Red Mountain gold target.
Allegiance Coal (ASX:AHQ) has expanded the resource tonnage at its New Elk Mine in Colorado after acquiring the neighbouring Lorencito coal lease agreements.
The Lorencito property contains the same coal bearing units that exist in New Elk and increases the New Elk hard coking coal resource tonnage by 87.6 million tonnes to 744 million tonnes.
While the new acquisition is permitted for production, Allegiance will have to obtain an extension to the current mine permit to develop an underground mine within the target Primero seam.