Red Rock Resources (LON:RRR) 25.1% owned Jupiter Mines (ASX:JMS) has nearly completed its acquisition of a 49.9% stake in the world-class Tshipi Kalahari Manganese Project in South Africa from a group of investors including Pallinghurst Resources Limited and Investec, and will commence drilling at its Oakover Manganese project this month.
Progress has been made in the the Share Sale and Subscription agreement between Jupiter the Pallinghurst Co-Investors and Investec.
Jupiter expects all aspects of the Tshipi transaction to be finalised promptly. This will include seeking shareholder approval for the transaction through an Extraordinary General Meeting in August.
Jupiter will commence drilling at its Oakover Manganese project this month. The company has identified a number of first pass exploration targets which will form the basis of an ongoing exploration program.
Jupiter has previously reported encouraging exploration results from Oakover including high-grade surface sampling results assaying up to whopping 62.6% Mn.
Geoff Wedlock, non-executive chairman, said the company’s transformation into a focused steel feed raw materials company in well on track.
“Our immediate focus is to complete the Tshipi transaction, and our exploration team is now mobilising to commence drilling operations at Oakover.”
Jupiter also announced today that, subject to shareholder approval, it plans to raise additional funds from the Pallinghurst Co-Investors, currently estimated to be around $5 million, through a placement of new ordinary shares.
The funds raised will be used to fund the costs associated with the acquisition of the Tshipi asset, and to support the company’s immediate growth objectives.
Wedlock added, “While Tshipi is our most important priority at this time, the development of Jupiter’s other assets is also continuing and it is our intention to fast track exploration activities at Oakover and at our other projects in the Central Yilgarn.”