Volta Mining acquires Mbombo iron ore project

THE BOURSE WHISPERER: Emerging West Africa-focused company Volta Mining has been granted, the Mbombo iron ore project, through its 80 per cent-owned Gabonese subsidiary, Volta Iron SA.

The project consists of two exploration licences located in Gabon, West Africa.

The company said the exclusive licences are prospective for iron ore and cover a total area of approximately 3,922 square kilometres located adjacent to the Belinga iron ore project – an estimated four billion tonne iron ore project in the north east of Gabon.

Volta claims the Mbombo iron ore project to be one of the largest iron ore ground positions in Central West Africa.

 

Volta Mining’s Mbombo iron ore project, Gabon – location and infrastructure. Source: Company announcement

Volta’s exploration field team is currently assessing various iron outcrops while the company is also currently acquiring aeromagnetic data to assist in defining an Exploration Target.

“We are very excited to have been granted the Mbombo iron ore project as the project is not only prospective for iron but, importantly, it is served by alternative transportation options,” Volta Mining managing director David Sumich said in the company’s announcement to the Australian Securities Exchange.

“Volta Mining’s interest in securing an iron ore asset in Gabon was spurred by our goal of creating significant upside for shareholders through the acquisition of additional assets and the diversification of commodity holdings.

“We hope not only to replicate the success achieved at DMC Mining Limited but to build on it creating significant value for shareholders.”

Volta pointed out the advantageous position of the project in terms of infrastructure options, with two distinct and clear existing bulk transportation alternatives in close proximity.

It also considers Gabon to be an attractive location for other reasons, such as no-perceived cross-border issues, ease of access to roads, rail and river.

It also believes the country to be s politically stable with a government that actively encourages foreign investment.