Shares of Nativo Resources Plc rose sharply in early trading after the company announced it had signed a term sheet to acquire the Morrocota gold mine in Peru.
Located just three kilometers from Nativo’s 50%-owned Bonanza gold mine, the Morrocota asset is already being prepared for mining, with vertical and horizontal development well underway. Recent samples from the site have shown gold grades as high as 23.4 grams per tonne.
The mine has been operated by Boku, Nativo’s joint venture partner, in recent months, and Boku is expected to continue managing operations moving forward.
Nativo CEO, Stephen Birrell, expressed enthusiasm about the acquisition, noting, “This is a great opportunity to accelerate gold production and cash flow, bringing two neighboring mines together under the Nativo and Boku umbrella, with all the associated operational and financial economies of scale.”
He further emphasized that the acquisition aligns with the development of the Bonanza mine, creating synergies between the two operations. “We are effectively buying a mine in development which will deliver early cash flow by the second quarter of 2025.”
The acquisition deal involves Nativo paying £124,557 in shares to acquire the Morrocota Gold Mine. The vendors, Peruvian nationals Emilio Jimenez Velarde and Ignacio Jimenez Velarde, will also receive warrants to buy additional shares in the future. Additionally, they have committed to investing in Nativo by subscribing to new shares, acquiring a 7.05% stake in the London-listed company.
Nativo’s shares rose by 15% to 0.0029p in early Friday trading, with the stock reaching as high as 0.0032p. The company has a market value of approximately £1.5 million.
