Date:Apr 25, 2018
Sabre Resources (ASX: SBR) has announced it will swallow up Kinetic Metals Pty Ltd and its West Australian vanadiumprospects following the completion of a A$1.6 million oversubscribed placement to sophisticated and professional investors.
Sabre will acquire Kinetic and its Speewah, Unaly and Balla vanadium projects to take a 100% interest in the prospective land located in Western Australia. To complete
The company also revealed it had completed a placement at A$0.015 a share to raise gross proceeds of A$1,588,000.
If shareholders agree, it will attach a free option to each share that can be executed at A$0.03 each by 31 October 2019. Sabre is also hoping to launch a further capitalising raising for ordinary investors, capping total subscriptions at A$500,000.
Sabre’s board says it is well placed to “take advantage of the dynamic market conditions that relate to the dominant battery-metals sector”.
“We consider the proposed acquisition of Kinetic Metals and these WA-based vanadium projects as an excellent opportunity for Sabre to commence exploration in areas which are host to several large vanadium-titanium deposits,” said the board whose directors include David Chapman, Michael Scivolo and Robert Collins.
The directors called the completion of the placement a demonstration of the attractiveness of its portfolio and the projects it would acquire.
“The company is now well funded to advance its exploration activities at the Sherlock Bay nickel-cobalt project as well as conduct early-stage exploration at the Kinetic Metals projects, following completion,” the board members said collectively.
Next steps
Sabre will continue to conduct a due diligence process for the WA project acquisitions, looking at the technical and legal aspects of Kinetic Metals and the projects in controls.
The company is also planning further exploration and a spin-out of its Namibian assets to a new company it hopes to list on the Australian Securities Exchange. The assets include land returning high grades of lead-vanadium mineralisation, a lead-zinc resource and high-grade copper.
