The Carpentaria Resources Ltd (ASX: CAP) share price is one of the best performers on the ASX today. This comes after the company announced an update to acquire an interest in the Hawsons Iron Project.
At the time of writing, the miner’s shares are swapping hands for 7.1 cents apiece, up an astonishing 54.3%.
What did Carpentaria announce?
Investors are pushing Carpentaria shares higher following the company’s passing of certain obstacles that held up the Hawsons Project sale.
According to its release, Carpentaria advised it has finally reached an agreement with Pure Metals. While the details were kept under wraps, Carpentaria will acquire a 24.149% interest in the Hawsons Iron Project. In return, the company will issue Pure Metals 90.8 million Carpentaria shares.
The transaction gained shareholder approval at the company’s Annual General Meeting (AGM) in early November 2020. In that time, both companies managed to resolve all outstanding matters including the sale and purchase agreement conditions being met.
Completion of the deal is expected to occur around next Wednesday 19 May 2021.
In addition, Carpentaria noted that it has been looking for sophisticated investors to buy its 90.8 million shares once issued to Pure Metals. To facilitate the move, Pure Metals appointed Shaw and Partners’ Wholesale Trading team to act on their behalf.
Carpentaria executive chair, Bryan Granzien touched on the company’s plans to progress the Hawsons Project, saying:
We now expect to be able to do justice to the Hawsons Project and raise the funds necessary to complete the bankable feasibility study then proceed to development of the project. CAP will look to take advantage of the huge demand for the highest-quality iron ore products worldwide, and do so for the benefit of CAP shareholders, the community of Broken Hill and other stakeholders.
About the Carpentaria share price
Today’s announcement led Carpentaria shares to hit a multi-year high of 7.3 cents today. The last time its shares reached this level came back in late 2018.
Over the past 12 months, the Carpentaria share price has gained around 220%, with year-to-date performance sitting close to 70%.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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