Critical minerals explorer Uvre Ltd (ASX:UVA) is set to take a deep dive into precious metals, acquiring a portfolio of highly prospective gold projects in New Zealand and welcoming 2 noted mining entrepreneurs to its board.
The company has signed a binding agreement which will see it take on all shares in Minerals Exploration Ltd (MEL), whose subsidiary – Otagold Ltd – controls a suite of projects comprised of 3 exploration permits stretching across 332 square kilometres.
Chief among these assets is the Waitekauri gold project, located 8km west of OceanaGold Corporation’s 10-million-ounce Waihi gold mine (10Moz) in the country’s North
Island.
This location is enticing in other ways, with 3 additional gold deposits hosting more than 1 million ounces being adjacent to Waitekauri. Adding to this, multiple drilling targets have already been identified at the project, where gold and silver were previously mined at 48 grams per tonne.
Before the acquisition of MEL can be completed, due diligence will need to be completed on this company, Otagold and the latter’s permits, in addition to the contingency of Uvre raising at least $4 million through a single tranche share placement.
This placement – to be managed by Bell Potter Securities – will price shares at 8 cents each, and be subject to shareholder approval. Following a well-supported bookbuild, firm commitments have been received for this equity raise.
Included in the latter are contributions from incoming directors Norman Seckold
($500,000) and Peter Nightingale ($100,000), which will also be subject to shareholder approval.
Mr Seckold and Mr Nightingale are major shareholders in MEL, and will join Uvre as non-executive directors.
Uvre shares rose following the announcement, and at 13:07 AEST, they were trading at 10 cents – a rise of 6.38% since the market opened.
Join the discussion: See what HotCopper users are saying about Uvre and be part of the conversations that move the markets.