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Shares in Stirling Minerals Ltd (ASX:SMZ) jumped over 11 per cent on Monday, following the junior explorer endorsing the takeover of Africa-focused DMC Mining Ltd.
Last month Cape Lambert Resources Ltd (ASX:CFE) approved the sale of its subsidiary DMC to Stirling, for $47 million and a 25 per cent interest in Stirling.
On Monday, Stirling shareholders backed a $96 million capital raising to fuel the acquisition.
The company advises that the placement has already received firm commitments from international funds and institutions.
Stirling expects a re-quotation of the company on the Australian Securities Exchange early next year, under its new name, African Iron Ltd.
Stirling Minerals moved from a loss in 2009 to a net profit of $973,000 in the year to 30 June 2010.
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