Mineral Commodities announced it will acquire mineral sands explorer Simto Resources in a deal worth $37.5 million.
The share sale agreement follows Mineral Commodities’ $96 million acquisition of Cable Sands in July.
The Perth-based miner said the acquisition of Simto would expand its resource base and extend the mine life of the Cable Sands, due to the close proximity of Simto’s tenements.
Simto’s tenements contain JORC compliant measured, indicated and inferred resources of 1.96 million tonnes of contained heavy minerals.
The $37.5 million purchase price will be paid through the issue of Minerals Commodities shares and up to $500,000 in cash.
The acquisition remains subject to shareholder approval.
