Manas to buy gold project in Tanzania

Shares in local explorer Manas Resources have doubled in value on news the company has entered into an agreement to acquire the Victoria gold project in Tanzania from a private Italian group for $US4 million ($A5.4 million) in cash and shares.

Manas will pay $US1.8 million in cash to buy the gold project from Italian group Cienega, plus $US2 million in shares at a price of 0.2 cents each.

The price of the share component of the deal is a 100 per cent premium to the company’s last closing price of 0.1 cent.

Manas will also undertake a $657,000 capital raising to fund the cash component of the deal, and has flagged an entitlement offer but the details are yet to be finalised.

The raising has been priced at 1.8 cents each.

Investors welcomed the news, with the company’s stock increasing to the issue price of 0.2 cents a share.

Manas is also exploring for gold at its Shambesai project in southern Kyrgyzstan.

Somers & Partners acted as lead manager to the raising.