Western Metals buys into Welsh zinc project
Western Metals Limited
(WMT.AX)
money.ninemsn.com.au
WESTERN METALS
10/04/2008 15:49 Sydney, Australia.
Value Change % Change
0.095 +0.022 +30.140%
announced it has signed a an agreement to acquire 100% of the advanced Parys Mountain copper-zinc project on the island of Anglesey in North Wales. The deal will see the company sign a formal sale agreement and pay UK based Anglesey Mining $7.6 million in a combination of cash and shares.
On the completion of a successful bankable feasibility study or three years, whichever is earliest, Western Metals will then make a further payment of $21.5 million in a combination of cash and shares.
Western Metals advised that the Parys Mountain region has been one of Britain's biggest producers of copper, reportedly yielding in excess of 300,000 tonnes of metal before mining ceased around 100 years ago.
Currently, the project has planning approvals for a 1,000 tonne per day operation and enjoys strong community and government support, the company said.
Managing Director George Bauk said Parys Mountain offers an outstanding opportunity for Western Metals to achieve its aim of becoming a significant metals producer.
"We have consistently stated our intention to acquire a high quality asset with near-term production potential that will complement our portfolio of world-class exploration assets," he said.
"We believe Parys Mountain represents just such an opportunity."
Western Metals said in an announcement to the market that it intends to fast-track work programmes, including drilling to establish JORC compliant resources and concurrently proceed with a formal feasibility study.
"Current project schedules estimate completion within 2 years at a cost of $12 - $15 million," the company said.
The company claimed that this would pose no problem, as it has both the appropriate team and the cash to take the project on immediately.
The transaction is due to proceed after a maximum 120 day due diligence period.
At 1109 AEST, shares in Western Metals were trading 1.5c, or more than 20% higher at 8.8c . |
