Polymetals Resources Ltd (ASX:POL) is trading higher as it enters the final stages of negotiations for the potential purchase of Orana Minerals Ltd, which is acquiring an Australian polymetallic production asset.
Orana Minerals is the sole shareholder of a special purpose acquisition vehicle (SPV) that was incorporated to acquire a historical lead, zinc and silver mine development project.
The SPV entered into a legally binding acquisition agreement concerning the purchase of the development project in Australia which is currently on care and maintenance.
The markets have welcomed the news with shares trading as high as $0.22, up 25.71% from the previous close.
Acquisition progress
While the acquisition agreement for the potential acquisition has not yet been executed, it is expected that the consideration payable will be 52 million new shares in the company.
Completion of the acquisition agreement will result in Orana Minerals and the SPV becoming subsidiaries of the company.
About Polymetals
Polymetals aims to become a gold production company, initially focusing on its two 100%-owned exploration licences within Guinea’s Siguiri Basin, totalling 112 square kilometres.
The Siguiri Basin hosts several large active gold mining operations and is notable for its significant and widespread gold anomalism.
Polymetals’ exploration licences, known as Alahiné (64.2 square kilometres) and Mansala (48.2 square kilometres), host extensive historical and current artisanal gold production, reinforcing the exploration potential of the area.