THE BOURSE WHISPERER: Metals of Africa (ASX: MTA) has signed a binding Share Sale Agreement to acquire 100 per cent of the issued capital of Express Resources.
Express Resources is an unlisted Australian public company based in Perth, Western Australia, with offices in Maputo, Mozambique and Dar Es Salaam, Tanzania.
The company’s portfolio of projects includes eight granted exploration licences and numerous licence applications, of which Metals of Africa anticipates twenty to be granted within the next twelve months.
The projects are in significantly underexplored areas with minimal modern day exploration performed.
“The acquisition of Express provides the company with an unrivalled portfolio of exploration projects in what is largely an underexplored, highly prospective area of East Africa,” Metals of Africa chairman Gilbert George said in the company’s announcement to the Australian Securities Exchange.
“The company will have a well-balanced portfolio of advanced and early stage projects all exhibiting prospective geology for a variety of minerals.
“This is consistent with the company’s stated strategy of developing our project pipeline in East Africa, especially Mozambique, where we have established strong relationships with the government and already boast significant operational capacity.”
Express Resources’ founding shareholders have been living in East Africa – in particular Mozambique and Tanzania for the past two years reviewing projects and available exploration ground.
During this time Express has identified prospective geology in Mozambique and Tanzania based on anomalous geophysical and/or geochemical data.
Express followed up all this work by applying for, what it considered, the most prospective landholdings in these countries with all licenses applied for having undergone a detailed geological appraisal.
The project to emerge as the company’s major focus is the Tanga copper-gold project in Tanzania.
The Tanga project includes three granted licenses located in the Hardeni District, in the northeast of the country.
Reconnaissance RC drilling at the Tanga copper-gold project. Source: Company announcement
Express has previously conducted soil/rock chip sampling, trenching and a reconnaissance RC drilling program at Tanga, which identified regional soil geochemistry exhibiting elevated copper and gold across a large area which is considered deserving of exploration advancement in the form of additional soil sampling and drilling in order to determine the depth extent of copper-gold mineralisation
“The acquisition delivers Metals a “First mover” advantage in Mozambique and significantly reduces the time taken to develop such a project pipeline organically,” George said.
“The Express personnel will complement the existing Metals team in Mozambique.
“It includes a highly competent geological team capable of assessing multiple resource opportunities, with a history of significant project generation and exploration success in East Africa.”