THE BOURSE WHISPERER: Silver Stone Resources (ASX: SSZ) has entered into an implementation agreement to acquire 100 per cent of the issued capital of unlisted company OreCorp Limited.
OreCorp holds various interests in gold and base metals projects located in Ethiopia and Mauritania.
Source: Company announcement
OreCorp’s key projects are the Yubdo – Ursa project in Ethiopia, prospective for gold and nickel, chromium, platinum and the Akjoujt South project, prospective for gold-copper in Mauritania.
OreCorp also holds a right to acquire up to a 90 per cent interest in the Oua Oua project in Mauritania, prospective for gold-base metals.
The new entity will emerge with approximately $9 million cash and no debt with a mandate to pursue exploration.
“The Acquisition of OreCorp and its projects are supported by its directors and key stakeholders,” Silver Stone Resources said in it ASX announcement.
“On completion, Silver Stone will become a well-funded gold and base metals exploration company with interests in Ethiopia, Mauritania and Western Australia.”
The deal will also see OreCorp directors join the Silverstone Board, including Craig Williams – former president and CEO of Equinox Minerals – as Chairman and Matthew Yates – former joint managing director of Mantra Resources – as CEO and managing director.
The company’s name will change to “OreCorp Limited”.
Silverstone said OreCorp’s directors unanimously support the terms of the implementation agreement.