Sabre Resources Limited’s (ASX:SBR) news of its intended acquisition of three vanadium projects in Western Australia has been well received by the market with shares surging 94% to a new 12-month high.
The company has traded at up to 3.1 cents on strong volume of more than 48 million.
As well as the proposed acquisition of Kinetic Metals Pty Ltd, Sabre’s surge has been supported by a heavily subscribed placement raising about $1.588 million and the proposed spin-out of its Namibian assets.
Sabre intends to acquire Kinetic Metals
Sabre has entered into a binding share sale agreement to acquire Kinetic, which holds the Speewah, Unaly and Balla vanadium projects.
This follows the company’s recent acquisition of the advanced Sherlock Bay Nickel-Cobalt Project.
The acquisitions position Sabre well to take advantage of dynamic market conditions relating to the battery-metals sector.
Three prospective projects
Speewah adjoins the area that contains the King River Copper Ltd’s (ASX:KRC) Speewah Dome project which hosts a resource of 4.7 billion tonnes at 0.3% vanadium pentoxide (V2O5), 2% titanium dioxide (TiO2) and 14.7% iron.
Unaly adjoins Surefire Resources NL’s (ASX:SRN) Unaly Hill project hosting a resource of 86.2 million tonnes at 0.42% V2O5, 4.5% TiO2 and 24% iron.
The tenement also extends to Venus Metals Corporation Limited’s (ASX:VMC) Youanmi Vanadium Project with a JORC resource of 330.6 million tonnes at 0.29% V2O5, 5.95% TiO2 and 19.41% iron.
Balla is prospective for mineralisation similar to Forge Resources Limited’s Balla-Balla Iron-Vanadium-Titanium project which hosts a 456 million tonne resource at 0.65% V2O5,13.7% TiO2 and 45% iron.
Placement raises $1.588 million
Sabre has completed a heavily oversubscribed placement to professional and sophisticated investors to raise about $1.588 million via the issue of shares at an issue price of 1.5 cents per share.
It also proposes to complete a share purchase plan capped at $500,000 entitling shareholders to acquire shares at the same price as the placement.
The company is now well-funded to advance exploration at the Sherlock Bay project as well as conduct early stage exploration at the Kinetic projects.
Spin-off of Namibian assets on the cards
Sabre is considering spinning out its prospective Namibian projects, including the Border lead-zinc deposit and the high-grade copper mineralisation at the Guchab project.
The Namibian assets are also prospective for high-grade vanadium mineralisation at Baltika and Kaskara.
A drilling program will be carried out at Baltika Vanadium-Lead-Zinc Project to advance the deposit in preparation for the proposed spin-out.