LONDON (Alliance News) - Nyota Minerals Ltd on Tuesday said it has entered into a cash and shares deal to buy a 70% stake in KEC Exploration Pty, the owner of an exploration permit for a nickel project in Italy.
Nyota said it will acquire the stake in KEC for AUD100,000 in cash plus 75 million new Nyota shares. Based on Nyota's closing price on the Australian Stock Exchange on Tuesday, makes the total consideration worth AUD158,524. The stock has rocketed on the news in London Tuesday afternoon, more than doubling to 0.110 pence.
The project it has acquired it based in the northern portion of the Ivrea Gabbroic complex in northwest Italy, a prospective nickel exploration area. The project previously produced nickel but is, according to Nyota, under-explored.
"This acquisition represents an exciting opportunity in a prospective mineral jurisdiction and having considered a number of new opportunities, we are confident that the Ivrea Project meets our requirements due to the excellent geological profile of the region and the strong upside potential," said Nyota Chief Executive Officer Richard Chase.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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