Aldoro Resources Announced Proposed Acquisition Of Altilium Metals; Stock Zoomed Up By 50%

Junior exploration company, Aldoro Resources Ltd (ASX: ARN) intends to acquire Altilium Metals Limited with the objective of creating a focussed West Australian Gold and Nickel exploration company. In an update provided on 6 September 2019, the company confirmed that it has entered into a binding option agreement to acquire 100% of Altilium Metals, owner of 5 Exploration Licences and 2 Exploration Licence Applications in the Murchison Region of Western Australia.

In addition to this, the company also announced a share placement of $0.65 million at $0.15 per share, representing a premium to market bolstering Aldoro’s cash reserves to circa $4 million.

Around 12 months back, Aldoro Resources got listed on ASX raising $5 million before costs. The raised amount was used by Aldoro to acquire several projects including Kalgarin Project, Ryans Find Project, Cathedral Belt Project and Leinster Project.

Aldoro Resources believes that this proposed acquisition of Altilium Metals will enhance its existing portfolio. Altilium Metals is a holder of portfolio of advanced exploration projects which includes:

• Penny South Gold Project
• Narndee Project Area
• Unaly Hill South (Au)
• Windimurra Igneous Complex (Ni-Cu-PGM, Li)

Following the release of the proposed acquisition announcement, the trading halt (announced on 4 September) was lifted from ARN’s securities and the stock zoomed up by 50% during the intraday trade.

While commenting on the proposed acquisition, Aldoro’s Chairman Mr. Jeremy King highlighted that the addition of Altilium’s exciting exploration assets is in line with Aldoro’s long-term strategy of creating a significant Western Australian exploration and development company. Mr. King also welcomed Mr. Caedmon Marriott and Mr. Rhod Grivas to Aldoro’s board and noted that their experience is expected to greatly assist the company in future.

Overview of Altilium’ Exploration Assets

Penny South Gold Project

Located in the Youanmi Gold Mining District, Penny South Gold Project contains over 2.5-kilometer strike extension of the Penny West Shear. The project lies directly to the south of the Penny West Gold Project owned by Spectrum Metals (ASX: SPX) which has reported outstanding recent exploration success at Penny North with various anomalous intersections of gold mineralisation encountered in the past. This project is one of the major highlights of this proposed acquisition.

Narndee Project Area

The multicommodity Narndee Project Area has two exploration projects:

• Narndee Igneous Complex (Ni-Cu-PGM).
• Kiabye Greenstone Belt (AU)

Narndee Igneous Complex (Ni-Cu-PGM): The historic drill results at the Narndee Igneous Complex have indicated Ni-Cu sulphide mineralization in the area. An airborne EM survey conducted by Maximus Resources (ASX:MXR) identified multiple EM targets in the complex. Aldoro Resources is currently excited about the nickel potential of the project.

Kiabye Greenstone Belt (Au): Historical work at this project has provided Anomalous indications of gold.

Unaly Hill South

Lying at the southern end of the Atley Complex, Tenement E57/1048 contains a significant vanadium titanomagnetite exploration target. In addition to this, E57/1048 is also considered prospective for gold mineralisation.

Windimurra Igneous Complex

The tenement applications E58/518 and E58/519 cover ~ 420 km² of the Windimurra Igneous Complex. Till now, Altilium has located around twenty pegmatites at the edge of the Windimurra Complex. These pegmatites are believed to be prospective for lithium mineralisation.

Details of Acquisition

It is to be noted that this acquisition is subject to legal and technical due diligence, and it also requires shareholder and regulatory approval.

Recent Updates

• Cathedrals Belt Exploration Update: Aldoro’s tenure lies to the east of St George’s Mt Alexander Project. Recently, St George Mining reported a new discovery of nickel-copper sulphides at its Mt Alexander Project which confirmed the potential for a number of occurrences of nickel sulphide mineralisation to be hosted along the Cathedrals Belt, enhancing the prospectivity of Aldoro’s tenure.
• Focus on Nickel Potential At Ryans Find Project- Aldoro recently provided an update on activities at its Ryans Find Project, located in Western Australia. The company has received assay results from a first pass geochemical survey at Ryans Find. Soil sampling results from Ryans Find Project found nickel anomalism on the western side of the ultramafic unit. Aldoro is now assessing the potential for IP and/or ground EM surveys to aid exploration targetting for nickel sulphides at Ryans Find.
• Aldoro To Drill Leinster Nickel Project - On 21 August 2019, Aldoro announced that it is gearing up for its maiden drilling programme at the Firefly Prospect, part of the Leinster Nickel Project. Expected to be carried out in the month of September 2019, the drilling will test a series of bedrock conductors modelled within an intense, 1-kilometer scale electromagnetic (EM) anomaly.

By the close of market trading on 6 September 2019, ARN’s stock was trading at a price of $0.210, up 50% with a market capitalisation of circa $4.97 million.

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