Atlas Metals Plc (LSE:AMG) shares climbed more than 15% on Friday, as it announced an updated Competent Person’s Report for its planned acquisition of Universal Pozzolanic Silica Alumina Ltd (UPSA).
The report, which covers extraction rights at the Yammacoona Sand Quarry in New South Wales, Australia, supports the proposed deal.
“We are making good progress with the proposed acquisition of UPSA. The updated CPR demonstrates even more potential within the PSA resource at Warialda,” said Chris Chadwick, CEO of Atlas Metals.
Atlas noted that the new report includes a newly-acquired area, Lot 5, and estimates an inferred resource of 208.09 million tonnes, made up of 41.72 million tonnes of sand and 166.37 million tonnes of pozzolanic sandstone. The asset’s net present value is calculated at A$3.31 billion over 25 years.
SLR Consulting prepared the report, which also includes plans for core drilling to upgrade the resource category.
In London, Atlas shares were up 15.7% changing hands at 32.4p.