EV Resources (ASX:EVR) has come out of its Week 37 trading halt with a bang, unveiling the acquisition of the Dollar Antimony Project in Nye County, Nevada, alongside a successful capital raising of up to $5.5 million.
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The company now owns 100% of the Dollar project, which it picked up by paying US$50 million for the refund of staking and administrative fees.
Dollar seller Strategic Minerals (ASX:SMC) also retains a 2% net smelter royalty.
It’s all a price EVR would have been very happy to pay, considering what it now unlocks.
Historical assays at Dollar returned grades up to 40.63% antimony, with modern U.S. Geological Survey sampling confirming values of up to 1%.
The property includes historical workings with three adits and a 30-foot shaft, the latter of which will give the EVR team direct access for exploration aimed at a mineralisation style aligned with world-class antimony systems.
“The acquisition of the Dollar Antimony Project provides EVR with a 100% owned, high-grade, strategically located asset in the heart of Nevada’s Great Basin,” EVR’s non-executive chairman, Shane Menere, told shareholders today.
“Dollar represents an exceptional opportunity for EVR to position itself as a key player in the development of critical mineral supply chains in the United States.”
Early Dollar plans will immediately be helped by EVR’s cap raise, announced today.
(Los Lirios in Mexico will also get a share of the raise’s spoils, of course.)
The company has already netted firm commitments to raise $4.75 million before costs, with that ticking up to $5.5M via an impending share placement.
As much as $750,000 of the raise is dependent on a third move EV Resources has made in September; the Australian explorer this week entered a non-binding Heads of Agreement with Locksly Resources (ASX:LKY) for ore sales.
Through the deal, EVR and Locksley will cooperate to establish a strategic relationship for material testwork, “developing production and value creation.”
“This agreement strengthens EVR’s development pathways, ensuring its production plans are underpinned by strategic offtake while validating concentrate quality through Locksley’s refining process,” the company wrote.
All in all, a big Wednesday for EVR – and one that could see its price swing through trade after it came out of its Week 37 trading halt this morning.
Before any of the action, EVR shares have been selling at one cent each.
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