- Mining company Accelerate Resources is buying out Halcyon in a deal worth $280,000
- Halcyon owns a WA Kaolin project, meaning the buy gives Accelerate a piece of the HPA market
- Accelerate is buying the company for seven million shares priced at four cents each
- Fellow ASX-listed explorer Nova in selling off its shares in Halcyon as part of the buy
- Accelerate resources closed 16.28 per cent down today to be worth 3.6 cents each
Accelerate Resources is set to take over private minerals exploration company Halcyon in a deal worth $280,000.
Halcyon owns the Tembellup Kaolin Project in Western Australia, meaning the buy gives Accelerate a foot in the high purity alumina (HPA) market of Australia’s west coast.
Accelerate is offering seven million shares for the buy — 1.3 million of which will be handed over to fellow ASX-listed Nova Minerals, who has given up its stake in Halcyon to focus on its gold and lithium projects.
Accelerate shares are being issued at four cents apiece — an eight per cent premium on today’s opening price
The company said the Tambellup project gives some unique opportunities to Accelerate, including the potential to target the Asian market with production and some silica sand as marketable co-product.
Drilling and other works have already been done on the project by Portman Mining, confirming the presence of a Kaolin deposit.
For Accelerate, its next steps once the purchase is complete will be to take on its own aircore drilling program in the area, conduct some bulk sampling, and complete a project-wide prospectivity evaluation.
Accelerate plans to turn to shareholders to help fund all this work through an entitlement offer. The company said it is in the process of finalising the terms of the offer and will update the market in due course.
Accelerate resources closed 16.28 per cent down today to be worth 3.6 cents in a $1.71 million market cap.
Nova, who sold off its stake in Halcyon, also closed in the red today, but only copped a 7.5 per cent hit with shares worth 3.7 cents each.