www.reyresources.com
Rey Resources (ASX: REY) is thermal coal development company with a large resource and major land position of 8,000km2 in the emerging Canning Basin of Western Australia. A Pre Feasibility Study on the firm’s maiden 511Mt JORC resource at Duchess Paradise was completed in January 2010 and revealed a 2Mtpa highwall mining export thermal coal operation, commencing production in 2013, to be financially robust. Capital costs are estimated at A$113 million and operating costs at A$60/t FOBT Derby, where Rey has its own port and loading facility. A major exploration program in 2010 over 100kms of subcrop will seek to extend the 8 year life of the proposed operation and add new resources.
Rey Resources divests non-core Humitos copper leases
Rey Resources (ASX:REY) will divest its Humitos copper exploration leases in Chile to China Yunnan Copper Australia (ASX: CYU).
The disposal is part of Rey Resources’ strategy to rationalise the Company’s non-core assets to allow management focus on the company's Canning Basin Coal Projects.
Sale consideration for Humitos is $200,000 cash and 1.5% Net Smelter Return royalty on any future production, subject to completion of transfer documentation. The divestment is subject to a 30 day due diligence period by CYU and to normal Chilean regulatory approval.
