NEW base metals miner Intec has pounced on a major stake in penny stock Jervois Mining, with Intec citing Jervois' nickel laterite resources as a key attraction.
Intec is currently reaping cash flow from the processing of old tailings from the Hellyer base metals mine in Tasmania using a specially designed treatment technology.
The company this morning announced it has used some of that cash to pick up 14.56% of Jervois' issued capital through a series of on-market transactions.
Intec said it had paid an average of around 1.16c per share for the stake.
With shares in Jervois moving up 0.8c to 2.9c in morning trade today, Intec has already seen the value of its investment doubled. On the back of this morning's gain, Jervois has a market capitalisation of $47.9 million.
"Intec considers that its own existing demonstration plant, strong future cashflows and proven technology and project development capabilities could accelerate development of Jervois' Young and Nyngan nickel laterite resources," Intec managing director Philip Wood said.
The Young deposit alone has an indicated and inferred resource of 167 million tonnes grading 0.72% nickel and 0.07% cobalt. Both Young and Nyngan are in New South Wales.
Wood said Intec was looking forward to productive discussions with Jervois' board "in order to progress mutually beneficial outcomes for the two companies and their shareholders".
Earlier this month, Jervois signed a memorandum of understanding with China's Guandong Guang Ye Assets Management over a potential joint venture over the Young project.
Intec's shares were up 0.5c at 20.5c this morning.
JRV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
