Australia

Volt Resources rises on acquiring highly prospective gold project in Guinea

Volt Resources Ltd (ASX:VRC) has been as much as 50% higher today after entering a share sale deed to acquire a highly prospective gold project in Guinea, Africa.

The project covers 388 square kilometres and comprises six permits in the Siguiri Basin, which forms part of the richly mineralised West African Birimian Gold Belt.

This acquisition transitions Volt to a diversified mineral resources company with a continuing commitment to developing the Bunyu Graphite Project in Tanzania combined with gold exploration and development.

The project is near the Guinea projects of Predictive Discovery Ltd (ASX:PDI) from which promising exploration results have recently been produced.

Shares higher


Shares were as high as 1.2 cents intra-day and are up from 0.5 cents at close on May 6.

Volt will acquire all the issued shares in Gold Republic Pty Ltd, an Australian proprietary company controlled by Volt chairman Asimwe Kabunga.

Gold Republic is the legal and beneficial holder of all of the issued share capital in each of Norsk Gold Pte Ltd, a registered Singapore entity which in turn is the legal and beneficial holder of all of the issued share capital in Novo Mines Sarlu, and KB Gold Sarlu.

Novo Mines and KB Gold hold 100% of the legal and beneficial interests in the permits.

"Exciting opportunity"

Volt managing director Trevor Matthews said: “This is an exciting opportunity for Volt to acquire a gold project with permits in a highly prospective and under-explored area.”

The Kouroussa and Kouroussa West permits border the recently discovered gold mineralisation announced by Predictive Discovery of up to 46 metres at 6.58 g/t.


Combined with the Fadougou permit, this provides Volt with a strategic landholding in this highly prospective area.

At Konsolon permit. a coherent 8-kilometre gold-in-soil anomaly has been identified along with gold-bearing grab samples and both the Nzimi and Monebo permits are considered to be in areas of high gold prospectivity.

Planning for exploration is underway.

Permit locations in relation to significant mines in the Birimian Gold Belt

Transaction details


The consideration for the acquisition includes:

  • The issue of 121,718,576 Volt ordinary fully paid shares on completion of the acquisition; and
  • A 2% net smelter royalty covering the permit area as well as a 10-kilometre radius from the permit boundaries.

Completion of the acquisition is subject to the approval of Volt shareholders to the issue of the completion shares, which is to be sought at an extraordinary general meeting expected to be held in late June 2020.

Value-adding


Volt will continue to progress its graphite business plans and the current Stage-1 development funding program for its Bunyu Graphite Project in Tanzania.

The addition of a gold focus will provide current and new shareholders with the opportunity to participate in the potential value acRead More – Source