Nyota Minerals (ASX:NYO, LON:NYO) shares raced up overnight as it announced it was entering the nickel space - striking an £81,000 acquisition deal in the Piemonte region of Italy.
The firm is to buy 70% of KEC Exploration, which owns an exploration permit for nickel and associated base and precious metals called the Ivrea project.
KEC also has three applications pending for exploration permits in the same area.
The permit area, of 31.2 sq km, includes at least five underground historic nickel mines, where grab samples by Nyota returned metal contents of up to 0.6% nickel and 3.8% copper.
Historical data indicates the potential for platinum group metals (PGMs), gold and cobalt credits, while almost no modern exploration has been carried out near the old mines or for hidden orebodies, Nyota highlighted.
Chief executive Richard Chase described the purchase as an "exciting opportunity in a prospective mineral jurisdiction".
"Exploration can lead to significant and rapid value creation for shareholders," he said.
"The Ivrea Gabbroic complex is underexplored and has never been subject to a modern geophysical survey, despite the presence of sufficient metal sulphide mineralisation to have justified mining over an extended period at multiple localities.
"In addition, the entry costs are realistic and the vendors, who are our new colleagues, can contribute significantly and retain a sufficient interest so as to want do so."
The initial consideration is 75 million Nyota shares and cash of A$100,000 to acquire 70% of KEC, which amounts to around A$158,534, or £81,252.
Nyota and KEC have agreed an initial work programme and budget for the first year with a target spend of at least A$150,000.
Nyota will focus on an airborne geophysical survey and compiling all available data.
An electromagnetic survey will investigate possible depth and strike extensions of known orebodies and the presence of previously undiscovered near-surface mineralisation.
Nyota will immediately fund 100% of KEC's expenses until it either decides not to continue with the project, or a JORC-compliant resource of 50,000 tonnes of contained nickel at an average grade of not less than 0.75% is defined, it said.
Nyota shares surged 325% to 0.17p.
