Volta Mining (ASX: VTM) has completed due diligence on Pilbara-focused iron ore explorer Pilbara Commodities Limited and will now proceed with its acquisition.
The company will launch an underwritten capital raising to raise $1.5 million as a condition to the acquisition proceeding.
This prospectus will be priced at $0.03 per share and will be fully underwritten by CPS Capital Group. It includes provisions for oversubscriptions up to a further $1 million.
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.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.