- Sabre Resources shares closed at 100 per cent higher today after announcing plans to purchase Power Metals
- Purchasing Power Metals will give Sabre access to the Bonanza Gold Project and the Lyon River Project
- Sabre will take up a $900,000 share placement to help fund its activities
Sabre Resources has seen share prices double today after announcing the purchase of gold explorer Power Metals, along with a $900,000 capital raising plan.
Sabre has its eye on the Bonanza Gold Project in Western Australia, which is currently wholly owned by Power Metals.
Gaining access to this project gives Sabre a foot in the Youanmi Gold Mining District, which has recently yielded success for big names like Rox Resources and Venus Metals.
The Power Metals purchase also gives Sabre access to the Lyon River Project, which lies nearby a successful neodymium-praseodymium deposit, but has yet to be properly explored, according to Sabre.
The Sabre Board told shareholders in an ASX announcement today the proposed purchase of Power Metals acts as an opportunity to start new exploration in a highly prospective area.
“This region has gained rapid investor attention with several companies reporting significant exploration success on their gold projects located in the same area. Through this proposed acquisition, Sabre is now able to have exposure to this rapidly expanding gold district,” the announcement read.
The final purchase price is subject to due diligence activities and shareholder approval, but will be paid in a combination of 58 million shares and options to Power Metals. At Sabre’s current share price of 0.8 cents each, this values the transaction at $464,000.
To support this purchase and other exploration and project development activities, Sabre plans to raise roughly $900,000 by issuing roughly 301 million new shares to professional sophisticated investors. The new shares will be placed at 0.3 cents per share.
Sabre’s shares closed yesterday at 0.4 cents per share, but jumped a straight 100 per cent today after the announcements.