Cove Resources says it has opened up a pathway to production by launching a plan to acquire an advanced stage titanium project in Finland for $11.2 million.
The Perth-based junior announced today it had entered into a sale and purchase agreement with Sweden’s Endomines AB, to acquire Kalvinit Oy, the holding company that owns the Koivu Titanium project in western Finland.
Cove will pay Endomines a total consideration of €9 million ($11.2 million) plus a 2 per cent net smelter royalty.
The company said it considered the acquisition a significant achievement, as is aiming to develop Koivu to produce high-quality titanium feedstock for the Finnish and wider European markets.
The mineral is used in the manufacture of titanium dioxide, which is widely used in the paint, plastic, pater and cosmetics industries.
Cove said it held the right to perform a bankable feasibility study on the project by April next year, at which point it will confirm whether it wishes to proceed with the acquisition.
Cove said it would complete a scoping study in the next two weeks, followed by a BFS targeting an initial 20 year, 250,000 tonne per year titanium concentrate operation.
At 12:30PM, WST, Cove stocks were flying on the ASX, up 30 per cent, or 3 cents, at 13 cents