Polymetals Resources Ltd (ASX:POL) has executed a share sale and purchase agreement for the proposed acquisition of all of the issued share capital of Orana Minerals Pty Ltd, a special purpose acquisition vehicle (SPV) incorporated to acquire the Endeavor Lead, Zinc and Silver Mine 40 kilometres northwest of Cobar in New South Wales.
The Endeavor Project, which is currently on care and maintenance, comprises 1,100 square kilometres of highly prospective exploration licences within the prolific Cobar Basin.
This includes access to a regionally significant, fully permitted mine, a 1.2 million tonnes per annum mineral processing plant and supporting infrastructure.
What comes with the acquisition?
The acquisition of Orana Minerals and subsequently, the acquisition of a 100% interest in the Endeavor Project will also provide Polymetals with:
- 16.3 million tonnes lead, zinc and silver JORC Code (2012) compliant resources within the Endeavor project mining leases;
- an opportunity to capitalise on decades of Cobar Basin exploration, mine development and production experience by its various team members;
- enhanced ore reserve potential by the restructuring of the existing silver streaming royalty; and
- jurisdictional and commodity diversification (and associated risk-reduction benefits) for the company and its shareholders.
The Endeavor Project is in the Cobar structural zone, about 30 kilometres north of the CSA Copper Mine and 40 kilometres northwest of the mining town of Cobar in central NSW.
The Endeavor Project is one of three significant mines in the district.
A total of 32.2 million tonnes of ore grading 8.01% zinc, 5.04% lead and 89.2 g/t silver had been mined and processed until December 2019 when the project was placed on care and maintenance by the current owner, CBH Resources Ltd, a subsidiary of Toho Zinc Co. Ltd.