Volcanic Metals (VOL.V) has now completed a C$1M capital raise and the acquisition of the Mandiana gold project in Guinea. Volcanic was able to purchase the project at a bargain price from the London-listed company Sovereign Mines of Africa (SMA.L). According to Sovereign Mines, Volcanic will acquire the 75% ownership in the mining permits by issuing 9.9% of its share capital to Sovereign SMA.
The Mandiana project is located in a region which has seen artisanal gold mining for a large part of the past millennium, and in excess of 7,000 artisanal workings have been found in Volcanic’s project area. The previous owner has completed a resource estimate on Mandiana in January 2014 (three years ago) and even though that maiden resource estimate seemed to be promising with an inferred resource estimate of 612,000 ounces at an average grade of 1.18 g/t, no additional exploration work has been undertaken in the past three years.
For Volcanic, the Mandiana project will be a core asset, and we expect to see Volcanic’s plans for 2017 within the next few weeks. After having raised C$1M in a placement at C$0.15, Volcanic will now have around C$1.2M in cash, on a total market capitalization of C$3.6M (based on approximately 24 million shares outstanding).
Trading volumes might be low in the first few days after the trading halt, so make sure you always use a limit order. The NI43 report has been filed on SEDAR and can be found HERE.
The author has a long position in Volcanic Metals. Please read the disclaimer