Volta Mining (ASX: VTM) has re-iterated that it will undertake a capital raising to raise a minimum of A$1.5 million at $0.03 per share to supplement the acquisition of Pilbara Commodities - and its Pilbara iron ore assets.
The raising is expected to be a non-renounceable entitlement issue to Volta shareholders as negotiations with Perth based CPS Capital Group to underwrite up to A$1.5 million continue.
On 20 November 2013, Volta signed a conditional agreement to acquire the entire issued share capital of unlisted Pilbara Commodities.
Notably, Pilbara Commodities has an iron ore project in the Pilbara with direct shipping ore that borders licences held by Fortescue Metals Group (ASX:FMG), Hancock Prospecting, BHP Billiton (ASX:BHP) (Mount Whaleback), Hope Downs and Brockman Mining (ASX:BCK).
Pilbara's DSO Newman Iron Ore Project looks particularly interesting and prospective given the Sirius Extension Prospect within the Newman Iron Ore Project is directly adjacent to Brockman’s Inferred Mineral Resource of 109 million tonnes at 60.0% iron (Fe) at the Sirius Deposit.
And surface results taken from an approximate 4 kilometre outcropping within Pilbara Commodities' Newman Iron Ore Project area exhibits up to +68% Fe, which shows the potential for DSO iron ore.
The record date for the capital raising for determining shareholder entitlements to participate in the offer is 29 November 2013.
Volta also has a suite of iron ore assets in central and west Africa, however it is believed that the Pilbara will be the main focus.
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