- RESA Group (RE1) has entered a binding agreement to acquire all capital of Tombador Iron Singapore
- Once this agreement is complete, RESA will acquire the Tombador Project in Brazil
- Once RESA has acquired the project it will undertake infill drilling and mine planning, and mobilise mining contractors to the site
- Subject to shareholder approval, RESA has proposed a name change to Tombador Iron
- Coinciding with the acquisition, RESA will also undertake a capital raise to raise $10 million through the issue of 400 million shares at a price of $0.025
- This money will be used for RESA’s post acquisition activities at the project
- RESA has ended the day with no change and shares are trading for 2 cents each
RESA Group (RE1) has entered a binding agreement to acquire all capital of Tombador Iron Singapore (TIS).
TIS fully owns Tombador Iron Mineração (TIM), which is the titleholder of Brazilian National Mining Agency (ANM) exploration tenement which contains the high-grade Tombador hematite iron ore deposit.
Tombador Project
The iron ore deposit, named the Tombador Project, is located in Bahia, Brazil, 700 kilometres from the capital of Salvador.
It has a combined JORC mineral resource of 10.1 million tonnes, and there are actually two deposits with separate mineral resources within the project.
Hematite
A measured and indicated mineral resource for the hematite tenement has been estimated at 5.41 million tonnes at an average grade of 67.21 per cent iron.
This is broken down into 1.94 million tonnes of measured at 67.04 per cent iron, and 3.47 million tonnes of indicated at 67.30 per cent iron.
There is also an inferred mineral resource of 2.58 million tonnes at 67.48 per cent iron.
Hematite is a common iron oxide that is located throughout rocks and soils, and it is used for radiation shielding, preparation for heavy media separation, and to produce pigments.
Itabririte
The project also hosts an itabririte tenement which consists of siliceous (a rock containing silica) itabririte and dolomitic (carbonate mineral made up of calcium magnesium carbonate) itabririte.
The siliceous itabririte has an indicated mineral resource of 27.52 million tonnes at an average grade of 37.65 per cent iron, and an inferred mineral resource of 3.77 million tonnes at an average grade of 39.90 per cent iron.
The dolomitic itabririte has an indicated mineral resource of 12.03 million tonnes at an average grade of 26.58 per cent iron, and an inferred mineral resource of 6.29 million tonnes at an average grade of 26.61 per cent iron.
Itabririte, which is also known as banded-quartz hematite, is an iron formation that is present in quartz.
Completion of acquisition
Once RESA has acquired the Tombador Project, and before it can begin production, it will undertake infill drilling and mine planning, mobilise mining contractors to the site, and complete final permitting for the operating and mining licence.
In line with this acquisition, Anna Neuling, Keith Liddell, and David Chapman will be appointed to the Board. These individuals collectively have more than 50 years’ experience in the resources industry.
Finally, RESA has proposed a name change to Tombador Iron, however, this is subject to shareholder approval.
Capital raise
Coinciding with the acquisition, RESA will also undertake a capital raise to raise $10 million through the issue of 400 million shares at a price of $0.025.
The company can accept over-subscriptions totalling an additional $5 million.
This money will be used for RESA’s post acquisition activities at the project.
RESA has ended the day with no change and shares are trading for 2 cents each in a $3.027 million market cap.