Proactive Investors - Run By Investors For Investors

NQ Minerals makes major move with Hellyer Gold Mine acquisition

All infrastructure is also largely in place at the former producing mine, which has tailings dumps in four areas.
picture of tailings dumps
Talings are in four areas at Hellyer

Tailings specialist NQ Minerals PLC (NEX:NQMI) is to take control of the mothballed Hellyer gold mine in Tasmania, Australia through a A$20mln (£11.8mln) deal that could see it in production within a year.

In a significant deal for the NEX-listed company, NQ said Hellyer is a permitted project project with life of mine revenues exceeding A$1.3bn (US$1.033bn) based on management estimates.

Other eye-catching numbers include a post tax net present value of A$276mln (US$210mln) compared to start-up requirements of just A$20mln.

WATCH: Hellyer project 'a really significant acquisition', says NQ Minerals' chairman

All other infrastructure is also largely in place at the former producing mine, which has tailings dumps in four areas.

In total, these amount to 11.24mt with a JORC compliant resource estimated at 9.5mt, which at 2.61g/t is the equivalent of 796,000 oz of gold.

There is also a potential 32mln oz of silver, 287,800 tonnes of lead and 237,900 tonnes of zinc.

CLICK for the Proactive newsletter 

NQ wil be a producer within 12 months believes chairman

Brian Stockbridge, NQ’s chairman, said Hellyer will be a flagship project for the junior.

“First work will involve the refurbishment of the existing operating facilities in order to extract and treat the large high-grade tailings deposit on site and produce three marketable concentrates (lead, zinc, gold/silver/pyrite). “

Over the longer term, he said Hellyer can be a world-class, company-maker project that blends well with its North Queensland assets.

NQ is facilitating the deal through the acquisition of owner Keen Pacific and its subsidiaries Ivy Resources and Hellyer Gold Mines Pty.

The cost is A$20mln cash plus shares to give the Keen vendors a 29.9% stake in NQ.  

An A$8.5mln loan facility from a New Zealand family office will finance completion.

View full NQMI profile View Profile

NQ Minerals Timeline

Related Articles

April 10 2018
The group kicked off, in January, a 15,000m winter drill program at Rajapalot
December 07 2017
King's Bay's drill core is already attracting significant interest, with assays due next month
picture of a lithium pegmatite
February 14 2018
Drilling at the Grants lithium deposit is targeting a resource upgrade in March 2018.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use