- Lodestar Minerals (LSR) shares have spiked after submitting a buy for Goldfellas, a company with exposure to a prospective nickel venture in Western Australia
- As part of the acquisition, Lodestar is set to issue 250 million for its shares to Goldfellas shareholders at 1.1 cents each
- Goldfellas has a 20 per cent stake in the Nepean Nickel project which contains tenements within the high-grade Nepean nickel sulphide mine
- Fellow ASX-lister Auroch Minerals (AOU) has the remaining majority interest in the project
- Investors appear to like the sound of the proposal, with Lodestar shares up 30 per cent trading at 1.3 cents each
Lodestar Minerals (LSR) shares have spiked after submitting a buy for Goldfellas, a company with exposure to a prospective nickel venture in Western Australia.
Lodestar entered into a binding term sheet with a selection of Goldfellas to acquire the company in its entirety, which holds a 20 per cent interest in the Nepean Nickel project.
The project, which is situated 25 kilometres south of Coolgardie in Western Australia, contains 13 tenements within the high-grade Nepean nickel sulphide mine, which is tipped as the second producing nickel mine in Australia.
The remaining 80 per cent is owned by fellow ASX-lister and project operator, Auroch Minerals (AOU).
As part of the acquisition, Lodestar is set to issue 250 million fully paid ordinary shares in the capital of Lodestar, which are set to be distributed amongst Goldfellas shareholders at 1.1 cents each.
A further $2.75 million of shares are set to be issued to GoldFellas shareholders should the Nepean project reach a JORC-compliant economic proven reserve status.
The acquisition is also subject to shareholder approval, which the Goldfellas directors are tipped to recommend shareholders accept.
A decision is expected at a general meeting in March.
Investors appear to like the sound the of the proposal, with Lodestar shares up 30 per cent trading at 1.3 cents each at 1:55 pm AEDT.