PERTH (miningweekly.com) – The share price of junior Renascor Resources increased by more than 81% on Thursday after the company announced the acquisition of a graphite/nickel sulphide project, in Western Australia.
Renascor said the company had signed a binding heads of agreement to acquire the Munglinup project in the Albany-Fraser Range province, which included intersections of up to 34.9% total graphitic carbon within a target horizon of over 25 km.
The project is also considered to be highly prospective for nickel sulphide and is situated some 50 km from producer Poseidon Nickel’s Maggie Hays and Emily Anne deposits.
“This is a unique, low-cost opportunity to acquire a project with highly prospective, drill-ready targets in a proven mineral province,” said Renascor MD David Christensen.
“The recent electromagnetic survey has confirmed the prospectivity of the shear structure along strike from the Halbert's deposit and we expect upcoming groundwork will identify additional targets.”
Under the terms of the acquisition, Renascor would acquire all of the issued and outstanding shares of Sol Jar Property in exchange for eight-million ordinary shares, the grant of a further four-million options, exercisable at 3c each, and A$100 000 in cash.
Subject to the completion of a definitive share purchase agreement, Renascor was hoping to immediately start geological mapping and sampling along the conductive sequence identified by the Halberts Shear Zone.
The company was hoping to start initial drill testing later this year.
Renscor shares were trading at a high of 2.5c a share on Thursday, up from an opening price of 1.4c a share.