Join our daily newsletter At The Bell to receive exclusive market insights
Alvo Minerals (ASX:ALV) has seen its share price spike more than 16% on news it is acquiring a 520,000-ounce gold project in Brazil and is planning to raise up to A$3 million through an Entitlement Offer opening later this week to help fund this as well as other exploration activities.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
The company has signed a non-binding Letter of Intent with Pan American Silver Corp to take on the Lavra Velha gold-copper project, whose mineralisation is broadly categorised as being IOCG (iron oxide copper-gold) style, and which also includes oxidised gold and silver mineralisation close to surface.
Located in Brazil’s Bahia state, the project has a Foreign Estimate of 9.2 million tonnes (Mt)
at 1.76 grams per tonne (g/t) of gold (Au) for 520,000k ounces (oz), including an indicated resource of 4.5Mt at 1.96g/t Au for 282,000oz, and an inferred resource of 4.7Mt at 1.56g/t Au for 238,000oz.
The shallow nature of its gold and silver (oxidised) mineralisation has been highlighted through intercepts such as 13.3 metres (m) at 17.1 g/t Au and 17 g/t Ag (silver) from 23m; and 3.5m at 20.1 g/t Au and 7 g/t Ag from 50m.
The priority for Alvo will be the completion of due diligence – already significantly advanced – with this needing to be done within a 45-day exclusivity period.
Alongside its acquisition news, Alvo said it would be undertaking a one-for-two pro rata Non-Renounceable Entitlement Offer to raise A$3.5M, priced at A$0.06 per share, with one-for-two attaching options (with an exercise price of 14cps).
The offer is expected to open to eligible shareholders at 7pm on Friday, April 4.
More market news
Never-ending: And just like that, Trump’s tariffs are back causing more market chaos
Meet GeoGeorge: The HotCopper poster so accurate he got hired as an analyst
“There is exceptional exploration upside to an already substantial resource of 520,000oz Au,
conservatively defined by a senior industry producer,” the company’s managing director Rob Smakman said. “Our team is eager to complete due diligence so we can start bringing our exploration skills to the table.”
Alva shares were last trading at 0.8 cents – a rise of 13.3% since the market opened.
Join the discussion: See what HotCopper users are saying about Alvo Minerals and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
