- Equatorial Resources (EQX) shares are soaring after the company agreed to acquire the Nimba Alliance iron ore project in Guinea, West Africa, in an all-scrip deal
- The project has one of the largest landholdings in Guinea’s prolific Nimamba Iron Ore Corridor, with two permits spanning nearly 500 square kilometres combined
- The acquisition aligns with EQX’s strategic focus on the large-scale exploration and development of iron ore assets where efficient economic production is possible
- In the past, significant intercepts at the project have included 14 metres at 60.7 per cent iron from the surface and 12 metres at 55.8 per cent iron from the surface
- Shares in Equatorial are up more than 30 per cent to 19 cents at midday AEST
Equatorial Resources (EQX) shares are soaring on Friday after it entered an agreement to acquire the Nimba Alliance iron ore project in Guinea, West Africa, in an all-scrip deal.
The project is considered one of the largest landholdings in Guinea’s prolific Nimamba Iron Ore Corridor, with two permits spanning nearly 500 square kilometres combined.
Equatorial said the acquisition aligned with its strategic focus on the large-scale exploration and development of iron ore assets where efficient economic production was possible as a result of neighbouring major mining projects.
The company will fork out 10 million EQX shares in return for the project — five million upon settlement and five million in deferred shares upon the renewal or extension of the Nimba West permit.
At Nimba Alliance, the company said it had excellent transport solutions, with the Nimba West and North permits located within 30 and 60 kilometres, respectively, from the Lamco bulk commodity railway in Liberia.
In the past, the project was owned by a consortium of major miners, including BHP Group (BHP).
Significant previous intercepts have included 14 metres at 60.7 per cent iron from the surface and 12 metres at 55.8 per cent iron from the surface.
Additionally, a recent program on the Nimba West permit identified samples of up to 61 per cent iron, requiring follow-up fieldwork.
The project is also located nearby a number of other significant projects, including High Power Exploration’s project, FMG-backed AI Maktoum project and ArcelorMittal’s project.
Shares in Equatorial were up more than 30 per cent to 19 cents at midday AEST.