Ascot Resources (ASX:AZQ) is a step closer to wrapping up the acquisition of the Wonmunna Iron Ore Project in the Pilbara of Western Australia after Ochre Group Holdings (ASX:OGH) shareholders approved the sale.
This was the last remaining condition precedent under the terms of the Sale and Purchase Agreement between Ascot and Ochre agreed in 3 July 2014.
Completion of the transaction is expected to occur by the end of this week.
Funding from Gunvor and RCF
Last week Ascot executed a $5 million investment from global commodities trading firm, Gunvor Group at a placement issue price of $0.25 per share.
Investment fund Resource Capital Funds LLP has agreed to acquire 20 million shares also at $0.25 per share.
This funding is one step closer as the conditions included completion of the proposed acquisition of Wonmunna by Ascot; completion of full form documentation; and RCF subscribing for its shares in Ascot.
Collectively, commitments by RCF, Gunvor and other sophisticated investors participating in the Wonmunna capital raising process total $11.2 million ($0.25 per share).
This is sufficent to progress the development of Wonmunna to a construction-ready state by mid-2015.
Wonmunna Project
Wonmunna is located 80 kilometres northwest of Newman and 375km south of Port Hedland, and is intersected by the Great Northern Highway. The Project comprises exploration licence E47/1137 and mining leases M47/1423, M47/1424 and M47/1425.
Wonmunna is strategically positioned adjacent to two major mines (West Angelas and Hope Downs) operated by Rio Tinto Iron Ore and which are within 20 kilometres of the lease boundary.
The Project comprises four primary direct shipping ore (DSO) deposits hosted by the Marra Mamba Iron Formation, namely North Marra Mamba (NMM), South Marra Mamba (SMM), Central Marra Mamba (CMM) and East Marra Mamba (EMM) (the Deposits).
The project has a resource of 84.3 million tonnes of iron ore resource at an average iron grade of 56.5%.
