Volta Mining (ASX: VTM) has dialled into the highly prospective area of West Africa which boasts a strong history of gold production, with a new strategic acquisition of projects in Burkina Faso and Mali.
Volta has now entered into a share purchase agreement to which the company has obtained an option to acquire up to a 100% interest in six projects, which cover more than 1230 square kilometres.
Importantly - the company already has a working knowledge of Burkina Faso through the already held Dangue Gold Project, with the new acquisition increasing Volta's West African footprint to around 1480 square kilometres.
Volta continues to move forward quickly due diligence on the acquisition, while also compiling historical exploration data, with contractors having been engaged with a view to commencing an auger drilling program.
David Sumich, managing director of Volta, commented: “Initial reconnaissance of the permit areas and analysis of historical exploration data is very encouraging. The majority of the permits lie on greenstone belts which play host to a number of large gold deposits in the region.
"A number of artisanal mines have also been identified indicating good prospectivity for gold mineralisation.”
Terms of the transaction
Volta has the option to wholly acquire Sahel Resources, a Mauritian incorporated company, and has entered into an agreement to initially acquire 85% of the shares in Sahel for a cash consideration of USD$195,000 plus 2.4 million Volta Mining shares.
If Sahel obtains the rights to become the registered owner of the two additional permits in Mali (currently still under negotiation between Sahel and the tenement vendors) then an additional 300,000 Volta mining shares will be payable to Sahel. Volta Mining retains the right to acquire the remaining 15% of Sahel at a to-be-agreed valuation.
Volta Mining new to ASX and on the move
The public history of Volta is brief, with the company only hitting the ASX boards in October 2011, after a successful IPO with offered 15 million shares at A$0.20 each, to raise up to $3 million.
At the time of listing Volta said that the company was also eyeing additional interests to complement those already held, with today's acquisition announcement highlighting how the company has already delivered on its first milestone.