Shares in Terranova Minerals shot up on the ASX today, after the Perth-based exploration company announced the acquisition of the 3 million ounce Manica gold project in Mozambique in a cash and scrip offer worth nearly $11 million.
Terranova said it had offered $2 million cash and 25 million shares for the Manica project, valuing the operation at $10.75 million based on today’s share price.
As part of the transaction, the Minaca gold projects’ African-based management and technical employees will join Terranova.
At close of trade, Terranova stocks were up 20 per cent, or 6 cents, at 35 cents.
The transaction remains subject to shareholder approval.
The Manica project is located in central Mozambique, and holds a JORC-compliant resource of 2,971,000 ounces of gold.
“The Manica gold project is an exciting opportunity for the company to acquire an advanced stage gold project with significant resources, in a favourable mining jurisdiction,” Terranova chairman Ben Bussell said.
“In addition to the outstanding asset, the company has obtained a very solid management and technical team.”
The company also announced today it had appointed Patersons Securities to act as lead manager for a $5 million capital raising, at a minimum price of 30 cents per share.
Terranova will issue a prospectus for the raising midway through October.
