Volt Resources Jumps into Gold Mining (ASX:VRC)
The share price for Volt Resources Ltd [ASX:VRC] is up 37.5% today at time of writing. Shares increased from $0.008 to $0.011 after a trading halt.
Volt Resources is an ASX listed graphite exploration and development company with the goal to become one of the top three natural graphite global suppliers this year. Their main focus is the exploration of the Bunyu Graphite Project in Tanzania.
What’s moving the VRC share price up today?
The company announced the acquisition of gold company Gold Republic, in Guinea, Africa, which is controlled by Volt Resources’ Chairman, Asimwe Kabunga.
The acquisition consists of the issue of close to 122 million shares and a 2% Net Smelter Royalty covering the permit area, plus a 10km radius from the permit borders.
As you can see below, the project has six gold permits in the Siguiri Basin with a total area of 388 square kms.
Source: Volt Resources
The Kouroussa and Kouroussa West permits border with Predictive Discovery Ltd’s [ASX:PDI] Kaninko Project who announced some good results in April this year. Volt Resources also noted the Konsolon permit holds an eight km-long gold-in-soil anomaly.
The company raised $800,000 to help fund the initial exploration programs for the gold project, but also to cover working capital for the Tanzanian graphite project.
The company will be completing the capital raising by placing 160 million new fully paid ordinary shares at 0.005 per share and 80 million unlisted options at an exercise price of $0.01 with a 24-month maturity.
What could happen next?
Volt Resources is adding this gold project to their portfolio in a move to diversify.
As Volt Managing Director, Trevor Matthews said:
‘This is an exciting opportunity for Volt to acquire a gold project with permits in a highly prospective and under-explored area. With Alphier Capital, I am continuing to advance the graphite funding process and this remains a key focus for the Company.
‘The addition of a new gold focus provides shareholders with exposure to one of the best performing metals on financial markets and the benefits of diversification in a period of economic uncertainty.’
With gold prices at close to $2,700, it’s certainly a good time to diversify into gold.
One way to get some exposure to the yellow metal is through gold miners. Another is by directly buying gold.
If you are interested in buying gold but aren’t sure where to start, check out Shae Russell’s step-by-step guide titled ‘Best Way to Buy, Sell and Store Gold’.
You can access this free report here.