logo-loader
viewNQ Minerals PLC

NQ Minerals agrees to invest in Tasmania Energy Metals

NQ will make an initial investment of £150,000 in Tasmania Energy Metals in the form of a convertible loan note

Tasmania
The two miners are assessing whether it would be commercially and financially viable to develop an integrated facility for the Hellyer Mine

NQ Minerals PLC (NEX:NQMI) has agreed to invest in Tasmania Energy Metals with an option to buy all of the Australian mining firm's assets for £5.5mln.  

The miner will make an initial investment of £150,000 in Tasmania Energy Metals in the form of a convertible loan note.

The money will help finance the costs of the two companies assessing whether it would be commercially and financially viable to develop an integrated minerals processing facility for the Hellyer Mine in Tasmania.

READ: NQ Minerals hails transformational year

The facility would allow NQ to recover the precious and base metals contained in its pyrite/precious metals concentrate, which the company believes is more valuable than the sale of the pyrite.

Under the agreement, NQ has an option to buy all of Tasmania Energy Metals’ assets, including the nickel-cobalt licences and full control of the processing facility that is being developed, for £5.5mln through the issue of ordinary shares in the company.

Tasmania Energy Metals has given NQ an exclusivity period up to July 31 to take up the option.

"Extracting further value from our existing concentrates is a low-risk way to enhance revenues and shareholder returns,” said NQ non-executive chairman, Brian Stockbridge.

"Now that we have successfully achieved commercial concentrate production at Hellyer, it is a natural extension to target downstream recovery of base and precious metals.

“Our pyrite/precious metals concentrate contains high grade gold, silver and zinc values and we believe this joint project could facilitate a significant increase our returns, whilst expanding our Tasmanian presence and creating a sound environmental footprint."

NQ said its long-term strategy is to purchase assets that enhance the life of mine at Hellyer.

As part of this strategy, NQ’s Pieman Resources subsidiary recently won a competitive tender over the Chester Mine, a pyrite mine located 25km from the Hellyer mill. 

Once the licence application has been granted, the company will start exploration with a view to integrating the Chester mineralisation into its future production plans.

Quick facts: NQ Minerals PLC

Price: 7.6 GBX

NEX:NQMI
Market: NEX
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

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...

In exchange for publishing services rendered by the Company on behalf of NQ Minerals PLC named herein, including the promotion by the Company of NQ Minerals PLC in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

NQ Minerals' David Lenigas updates as it looks to nearly double mining...

NQ Minerals PLC's (NEX:NQMI)(OTCQB:NQMLF) David Lenigas speaks to Proactive London's Andrew Scott after announcing they're to contract a second, high capacity mining dredge to boost its mining operations at the Hellyer project in Tasmania. The second dredge has a capacity to move 100 tonnes...

4 days, 9 hours ago

2 min read