Nativo Resources Plc (LSE:NTVO) shares jumped in Friday’s early deals on acquisition news, with the small-cap firm inking a term sheet to acquire a gold mine in Peru.
The Morrocota Gold Mine asset is just three kilometres from the Nativo’s 50% owned Bonanza Gold Mine, and it is currently being prepared for mining - with vertical and horizontal development already completed.
Gold grades of up to 23.4 grams per tonne have been measured in recent samples, Nativo highlighted.
Morrocota has been operated by Boku, Nativo’s joint venture partner, in recent months and going forward its anticipated that Boku will continue to manage operations at the project.
"This is a great opportunity to accelerate gold production and cashflow, bringing two neighbouring mines together under the Nativo and Boku umbrella, with all the associated operational and financial economies of scale,” chief executive Stephen Birrell said in a statement.
“The operations and mining geology are symbiotic with what we are developing with Bonanza.
“We are effectively buying a mine in development which will deliver early cash flow by the second quarter of 2025.”
Nativo is to pay £124,557, in shares, to acquire the asset. The vendors, Peruvian nationals Emilio Jimenez Velarde and Ignacio Jimenz Velarde, will also be given warrants to buy additional shares in the future.
They also committed to investing in Nativo, immediately subscribing to new shares, which equated to 7.05% of the London-listed company.
Nativo shares were up 15% in Friday morning’s deals, to 0.0029p, having changed hands as high as 0.0032p since the day’s open. The nano-cap mining stock has a market value of around £1.5 million.