THE BOURSE WHISPERER: West Africa-focussed resources company Volta Mining (ASX: VTM) is pleased to announce it has entered into a binding Heads of Agreement (“HOA”) with Core Mining.
The deal will result in Volta Mining, through its 100 per cent-owned Mauritian subsidiary, Volta West Africa, acquiring 100 per cent interest in Core Mining Gabon SARL, the holder of the Kango iron ore project in Gabon.
Core is to become a 15 per cent shareholder in Volta Mining upon completion of the deal.
“The acquisition of the Kango iron ore project is synergistic in terms of operations, exploration and future infrastructure with Volta Mining’s landmark Mbombo iron ore project acquired in August and as such we believe it will help position Volta Mining as a significant iron ore participant in West Africa,” Volta Mining managing director David Sumich said in the company’s announcement to the Australian Securities Exchange.
Volta Mining’s iron ore projects, Gabon: location and infrastructure. Source: Company announcement
The Kango iron ore project is located within the northwest margin of the Archaean Congo Craton within West Central Africa and covers a total area of 1,818 square kilometres.
Regional geophysical data has identified a 60km aeromagnetic anomalous zone.
Surface samples taken throughout the licence by Core have indicated the presence of iron mineralisation with grades ranging from 39 per cent iron to 61 per cent iron.
Volta is currently undertaking legal and technical due diligence, which it said it anticipated to be completed within a specified 30 day period.