PERTH (miningweekly.com) - The share prices of junior Emergent Resources soared on Monday on news that the company would acquire Colombia-focused base and precious metals explorer West Rock Resources.

West Rock’s flagship project is the Tarso gold project, which is in one of the world’s most prospective new gold belts. The exploration licence covers some 1 998 ha.

Under the terms of the transaction, Emergent would issue some 50-million fully paid shares, at a price of 3c a share, as well as 28.6-million options, with an expiry date of two years.

A further 28.6-million options, at 6c an option, with an expiry date of three years would also be issued.

More Emergent shares would also be issued with the reaching of certain project milestones.

“We are very excited about exploring in Colombia, unlocking the tremendous potential of the West Rock assets, and building the project portfolio in such a prolifically mineralised and unexplored jurisdiction,” said Emergent chairperson Wolfgang Fischer.

He added that the project was strategically located in an area where there had been several mineral discoveries, and noted that the West Rock team’s understanding of the mineralisation and geology of Colombia would be invaluable in the exploration and development of the Tarso, as well as other projects.

“The proposed transaction is further enhanced by the alliance between Cliffs Natural Resources and West Rock, which offers Emergent remarkable growth possibilities with a proven mineral giant like Cliffs,” said Fischer.

Under the alliance agreement, Cliffs would provide funding to West Rock to identify and explore projects in Australia and the Asia-Pacific region.

“The West Rock-Cliffs alliance speaks volumes about the confidence and respect Cliffs has for the professionalism and expertise of the West Rock team,” Fischer said.

Following the completion of the West Rock transaction, Emergent would launch an aggressive exploration campaign in Colombia, initially focusing on the Tarso project area. The company would also look to add to its project portfolio in Colombia by acquiring additional, high-quality exploration assets and targets.

Emergent shares were trading at a high of A$0.029 a share on Monday, up nearly 32% on its opening price.