29/08/2012 - 14:59

Terranova flying on African acquisition

29/08/2012 - 14:59

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Terranova flying on African acquisition

Shares in Terranova Minerals shot up on the ASX today, after the Perth-based exploration company announced the acquisition of the 3 million ounce Manica gold project in Mozambique in a cash and scrip offer worth nearly $11 million.

Terranova said it had offered $2 million cash and 25 million shares for the Manica project, valuing the operation at $10.75 million based on today’s share price.

As part of the transaction, the Minaca gold projects’ African-based management and technical employees will join Terranova.

At close of trade, Terranova stocks were up 20 per cent, or 6 cents, at 35 cents.

The transaction remains subject to shareholder approval.

The Manica project is located in central Mozambique, and holds a JORC-compliant resource of 2,971,000 ounces of gold.

“The Manica gold project is an exciting opportunity for the company to acquire an advanced stage gold project with significant resources, in a favourable mining jurisdiction,” Terranova chairman Ben Bussell said.

“In addition to the outstanding asset, the company has obtained a very solid management and technical team.”

The company also announced today it had appointed Patersons Securities to act as lead manager for a $5 million capital raising, at a minimum price of 30 cents per share.

Terranova will issue a prospectus for the raising midway through October.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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