PERTH (miningweekly.com) – Junior magnetite developer Nevada Iron has entered into an agreement to expand its footprint in the US by acquiring a strategic land-holding adjacent to its existing Buena Vista iron-ore project.
The company said on Wednesday that the acquisition would result in a 163% increase in the total footprint of the Buena Vista tenure, taking it to 15 973 acres.
The acquisition included several royalty positions over neighbouring claims hosting iron mineralisation, as well as extensive freehold land and water rights.
Nevada Iron said that the combination of the assets would see the company becoming the dominant player in the Buena Vista province, with the largest land-holding and mineral resource and reserve, the most advanced development projects, access to infrastructure, a dedicated multi-user rail siding and a port allocation.
Under the terms of the transaction, the ASX-listed Nevada Iron would issue more than 19-million shares, at a price of 14c a share, as well as more than 35.7-million warrants, each with a two-year term and exercisable at a price of 28c each, along with A$168 396 in cash.
The company would further undertake a private placement to raise A$300 000 by issuing more than 3.5-million shares and 3.5-million free attaching warrants, at a price of 14c each and 28c each respectively.
A private placement would also be undertaken to raise a further A$7.5-million, by issuing some 53.5-million shares and 17.8-million warrants, after shareholders approved the transaction. Nevada Iron is undertaking a North American listing.
The private placements would be completed with predominantly North American investors.