Polymetals Resources Ltd (ASX:POL) has moved closer to completing the acquisition of the Endeavor Silver-Zinc Mine in the resource-rich Cobar Basin of central NSW with two more conditions being satisfied.
The company’s wholly-owned subsidiary Cobar Metals Pty Ltd is acquiring the operations near the mining town of Cobar from CBH Resources (ASX:CBH) Ltd, a subsidiary of Toho Zinc Co., Ltd.
CBH has advised Polymetals that conditions 2 and 3, which relate to approvals by CBH’s bank and the Toho board, have been satisfied.
Acquisition conditions
Conditions that apply to the New Endeavor Share Sale Agreement between the parties were:
Polymetals intends to hold a meeting of shareholders in early July 2024 to consider approving the final condition for the acquisition of the mine.
Should this be granted Polymetals expects to take ownership of the Endeavor project in early July 2024.
READ: Polymetals Resources in strategic Cobar Basin alliance with Metals Acquisition
This comes hot on the heels of the company forming a strategic alliance with fellow Cobar Basin operator Metals Acquisition (MAC), which includes an initial A$2.5 million investment at A$0.35 per share for a 4.31% interest in POL.
In addition, MAC will invest another A$2.5 million at the same price subject to the satisfaction of a number of conditions including Polymetals securing sufficient funding to restart the Endeavour mine and processing plant.
The subscription agreement will see the parties advance synergies aiming to extract greater value from the Endeavor and CSA mines, which are both in the Cobar Basin of central NSW, Australia.