- Force Commodities (4CE) soared 50 per on the ASX today after it completed its copper project acquisitions
- The materials stock announced back in September it was looking to buy two key stakes in exploration tenements in Oman from Savannah Resources
- To complete the acquisition, Force bought all of Savannah’s wholly-owned subsidiary for 50 million Force shares, $3.5 million in cash and a one per cent net smelter royalty agreement
- Force’s new landholdings cover 999 square kilometres along the copper-rich Ophiolite belt in the Sultanate of Oman
- Following today’s announcement, Force shares rose 50 per cent to trade for 1.8 cents each
Force Commodities (4CE) soared 50 per on the ASX today after it completed its copper project acquisitions.
The materials stock announced back in September it was looking to buy two key stakes in exploration tenements in Oman from Savannah Resources.
Listed on the Alternative Investment Market (AIM) — a branch of the London Stock Exchange (LSE) — Savannah has a £35.49 million (Around A$64.79 million) market cap.
To complete the acquisition, Force bought all of Savannah’s wholly-owned subsidiary, Savannah Resources B.V. It offered the parent company 50 million new, fully paid Force shares, issued at one cent each. Savannah will also receive a $3.5 million preferential cash payment and one per cent net smelter royalty on all future metal sales from the projects.
It means 4CE now owns a 51 per cent stake in the Block 4 Project, a 65 per cent interest in the Block 5 Project, and 70 per cent holding in two exploration licence applications near the Block 10 project.
Force’s new landholdings cover 999 square kilometres along the copper-rich Ophiolite belt in the Sultanate of Oman.
At present, two deposits within Block 5 host a combined mineral resource estimate of 0.82 million tonnes at 3.4 per cent copper. That estimate includes a high-grade zone, said to contain half a million tonnes at 4.5 per cent copper.
Looking ahead, Force believes Block 5, in particular, is ripe for exploration and there’s opportunity to upgrade the current resource.
Speaking to the buy, Force CEO Simon Pooley said he was delighted to complete the acquisition.
“The company will now commence a two-fold strategy to advance the projects in Oman,” he stated.
“Given the high-grade nature of the projects, exploitation of these resources in a timely manner will focus on possible toll treatment. Accordingly, the next step is to complete a scoping study and then proceed to a feasibility study,” Simon continued.
“This is an exciting chapter in Force’s development to get into production and generate revenue,” he concluded.
Following today’s announcement, Force shares rose 50 per cent to trade for 1.8 cents each at 11:50 am AEDT.