Photo by: Bloomberg
PERTH (miningweekly.com) – Junior Iron Mountain Mining has acquired a 50% interest in Au Capital Mining, which owns two prospecting licences in the Solomon Islands.
Iron Mountain said on Tuesday that it had paid a nonrefundable option fee of A$100 000, granting the company a long option period and enabling it to complete extensive due diligence on Au Capital Mining and the projects.
In exchange for its shareholding in Au Capital Mining, Iron Mountain issued 20-million of its own shares to Au Capital Mining’s vendors on completion of the acquisition, and a further 20-million shares would be issued on either the first commercial shipment of bauxite from the projects, or within 12 months of the completion of the transaction.
Au Capital Mining’s assets include the Nendo bauxite project, where the presence of widespread high-quality bauxite mineralisation was previously identified.
Having now finalised the acquisition, Iron Mountain has assumed management of the project activities, and will start the next stage of field work exploration at Nendo. This would include infill auger drilling in higher-grade areas of the project to delineate a maiden Joint Ore Reserves Committee-compliant resource estimation, as well as to identify new areas within the project that boast bauxite mineralisation.