www.metallicaminerals.com.au
Metallica Minerals are a multi commodity resource company with major interests in
Nickel-Cobalt
Coal – Energy
Bauxite
Tungsten
Copper-Gold
Since its establishment in 1997 and ASX listing in November 2004, Metallica Minerals (ASX code: ‘MLM’) has maintained a core focus on the sustained development of its flagship NORNICO nickel-cobalt project in northern Queensland, while expanding its business through a complementary series of strategic resource project acquisitions, non-core asset sales, corporate alliances, and cutting-edge technological advances.
Metallica Minerals' subsidiary Planet Metals to sell Wolfram Camp project
Metallica Minerals (ASX: MLM) has reported that its 76% owned subsidiary, Planet Metals Limited (ASX: PMQ), has inked an option for the sale of the PMQ subsidiary which holds the Wolfram Camp tungsten project for $8 million.
Recent drilling has increased the resource base at the Wolfram Camp project. However, Metallica as the major shareholder of Planet Metals is prioritising funding for its own project developments and would thus be "less likely be able to support the extra funding requirements of returning the Wolfram Camp tungsten mine to production."
Metallica Minerals has executed an irrevocable proxy to vote in favour of the sale of the PMQ subsidiary which holds the project at the PMQ Extraordinary General Meeting that will be called to approve the sale should the transaction proceed.
Planet Metals has advised that its focus assuming completion of the sale of the Wolfram Camp project would be on "exploring and progressing the Mt Cannindah gold-copper project in Central Queensland."
Brett O’Donovan, chief executive officer of Planet Metals, said “Wolfram Camp has been progressively advanced over the last 12 months with recent investigations focusing on funding the proposed re-commissioning of the project."
"As a result, the company considers Tropical Metals’ cash offer to be fair and reasonable in the current market and views this transaction as the most timely means for the mine to ultimately resume production.”
Tropical Metals is a Brisbane-based private resource company which has a significant historical association with the Wolfram Camp project. Tropical Metals previously held the Wolfram Camp project area before farming out an 85% interest to Queensland Ores Ltd (now known as Planet Metals Ltd) in 2004.
At present, Tropical Metals remains in joint venture with Planet Metals, maintaining a minority 15% stake. Tropical Metals is working with other parties who will provide third party financial support in the transaction.
