Volta Mining (ASX: VTM) has completed due diligence and agreements for the planned acquisition of the Kango Iron Ore Project in Gabon.
The company previously agreed to acquire the project through the acquisition of a 100% interest in Core Mining Gabon SARL.
The acquisition of the Kango Project is synergistic in terms of operations, exploration and future infrastructure with Volta’s landmark Mbombo Iron Ore Project.
Volta has now executed a conditional Tenement Sale Agreement (TSA) with Core which replaces the previous binding Heads of Agreement (HOA).
Under the new agreement, the Kango licence will be transferred to Volta’s Gabonese subsidiary Fer Mining subject to Ministerial approval and the satisfaction of other standard conditions precedent.
The commercial terms of the TSA remain the same as those outlined in the previous HOA, with the balance of the cash consideration of US$175,000 to be paid to Core on execution of the agreement.
Volta will also issue 9 million performance shares, which will convert into fully paid ordinary shares upon the transfer of the Kango exploration licence to Volta.
PricewaterhouseCoopers Tax & Legal SA Gabon has confirmed the validity of the licence, with the licence valid for three years and renewable once for a further three years.
A diamond drill rig is currently onsite, and as part of the revised terms of the transaction Volta intends to engage the drilling company on suitable terms.
As part of the acquisition agreement, Core will become a 15% shareholder in Volta once the deal is complete.
Kango background
The 1,818 square kilometre Kango Iron Ore Project is located around 15 kilometres from the Trans-Gabon Railway, a bulk haulage multi-user railway, that runs about 125 kilometres to Owendo Port, Libreville.
Regional geophysical data has identified a 60 kilometre aeromagnetic anomalous zone, and surface samples taken throughout the licence by Core Mining indicate the presence of iron mineralisation with grades ranging from 39% to 61% iron.
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