The project covers 388 square kilometres and comprises six permits in the Siguiri Basin, which forms part of the richly mineralised West African Birimian Gold Belt.
This acquisition transitions Volt to a diversified mineral resources company with a continuing commitment to developing the Bunyu Graphite Project in Tanzania combined with gold exploration and development.
Shares were as high as 1.2 cents intra-day and are up from 0.5 cents at close on May 6.
Volt will acquire all the issued shares in Gold Republic Pty Ltd, an Australian proprietary company controlled by Volt chairman Asimwe Kabunga.
Gold Republic is the legal and beneficial holder of all of the issued share capital in each of Norsk Gold Pte Ltd, a registered Singapore entity which in turn is the legal and beneficial holder of all of the issued share capital in Novo Mines Sarlu, and KB Gold Sarlu.
Novo Mines and KB Gold hold 100% of the legal and beneficial interests in the permits.
Volt managing director Trevor Matthews said: “This is an exciting opportunity for Volt to acquire a gold project with permits in a highly prospective and under-explored area.”
The Kouroussa and Kouroussa West permits border the recently discovered gold mineralisation announced by Predictive Discovery of up to 46 metres at 6.58 g/t.
Combined with the Fadougou permit, this provides Volt with a strategic landholding in this highly prospective area.
At Konsolon permit. a coherent 8-kilometre gold-in-soil anomaly has been identified along with gold-bearing grab samples and both the Nzimi and Monebo permits are considered to be in areas of high gold prospectivity.
Planning for exploration is underway.
Permit locations in relation to significant mines in the Birimian Gold Belt
The consideration for the acquisition includes:
- The issue of 121,718,576 Volt ordinary fully paid shares on completion of the acquisition; and
- A 2% net smelter royalty covering the permit area as well as a 10-kilometre radius from the permit boundaries.
Completion of the acquisition is subject to the approval of Volt shareholders to the issue of the completion shares, which is to be sought at an extraordinary general meeting expected to be held in late June 2020.
Volt will continue to progress its graphite business plans and the current Stage-1 development funding program for its Bunyu Graphite Project in Tanzania.
The addition of a gold focus will provide current and new shareholders with the opportunity to participate in the potential value accretion from gold exploration and development, through leveraging off the company’s existing networks in Africa.
Matthews said: “With Alphier Capital, I am continuing to advance the graphite funding process and this remains a key focus for the company.
“The addition of a new gold focus provides shareholders with exposure to one of the best performing metals on financial markets and the benefits of diversification in a period of economic uncertainty.”
The map above identifies artisanal mining locations on the Kouroussa permit on a north-east line from the PDI discovery and the Kouroussa mine
The company has successfully raised $800,000 to assist with funding the initial exploration programs on the Guinea gold project, to provide working capital for the Bunyu project and to meet corporate costs.
This capital raising will be completed through the placement of 160 million new fully paid ordinary shares at 0.5 cents per share plus 80 million unlisted options with an exercise price of 1-cent per share and a maturity date 24 months from the date of issue.
The placement securities will be issued within the next two days.