PERTH (miningweekly.com) – ASX-listed Consolidated Tin Mines has signed a memorandum of understanding (MoU) to acquire all the assets held by Snow Peak Mining, including the Mt Garnet concentrator facility, in Queensland.
Under the terms of the transaction, Consolidated Tin Mines would issue about 600-million fully paid shares and a A$16.5-million convertible note to Snow Peak Mining, in exchange for the assets.
The consideration shares would be subject to a two-year voluntary escrow period.
The convertible note would be converted into 165-million ordinary shares and would be redeemable on, or before, September 1, 2015.
Upon the completion of the transaction, Snow Peak Mining would hold a 68% interest in Consolidated Tin Mines.
“Acquiring the Snow Peak Mining assets creates an opportunity to develop the Mt Garnet tin project, as well as to develop new opportunities contained with the current Snow Peak Mining and Consolidated Tin Mines asset base,” said MD John Banning on Monday.
He noted that combining the assets would position the company to efficiently implement development plans while fully leveraging resource, project, operational and financial synergies.
Consolidated Tin initially had a 9.85% free carry interest in Snow Peak Mining’s Surveyor project and managed the project, which includes the Mt Garnet concentrator.
The acquisition would also include the Surveyor-Balcooma mine, the Einasleigh and Maitland projects, as well as all associated mining tenements, plants, equipment, mineral agreements and mining information.