The IGO Ltd (ASX: IGO) share price is moving higher in morning trade, up 1.57%.
Below, we take a look at the ASX resource share's acquisition announcement.
What did IGO announce?
The IGO share price is gaining after the company reported it has entered into a binding agreement to acquire 100% of the Silver Knight nickel-copper-cobalt sulphide deposit from the Creasy Group.
IGO also said it is forming a joint venture (JV) with the Creasy Group across a portfolio of exploration tenements surrounding Silver Knight, in which it will have a 65% stake and Creasy Group will own 35%. Silver Knight is located in Western Australia.
The total cash consideration for both transactions was reported to be $45 million. Completion of the transaction is expected by the first week of October.
Commenting on the acquisitions IGO's CEO, Peter Bradford said:
We are pleased to have concluded this agreement with Creasy Group to acquire Silver Knight and the additional joint venture tenure. The Silver Knight discovery not only validated the potential for the Fraser Range to host multiple commercial nickel-copper sulphide deposits but also provides a secondary source of feed for the Nova processing plant.
Bradford added that the company aims to "fast track the detailed assessment and permitting of Silver Knight" with an eye to start pre-mining activity by 2023.
IGO plans an infill drilling program at Silver Knight after the transaction is finalised. It will also work on receiving a Native Title mining agreement and the needed regulatory approvals. The company said it will communicate its updated resource and reserve estimates to the market once work is completed.
IGO share price snapshot
Over the past 12 months, IGO's share price has gained 64%. By comparison the S&P/ASX 200 Index (ASX: XJO) is up 23% over that same time.
Year-to-date the IGO share price has continued to outperform, up 35%.
