PERTH (miningweekly.com) - ASX-listed Emu Nickel might well become an antimony-gold producer by as early as 2013, after securing the rights to acquire the Hillgrove project, in New South Wales, from fellow listed Straits Resources.

Shareholders of Emu were set to meet to discuss the A$40-million purchase of the Hillgrove project, as well as a A$60-million capital raising and a name change. If approved, Emu’s name would be changed to Ancoa NL.

The A$40-million transaction price for the Hillgrove project would consist of a A$10-million cash payment and A$30-million in convertible notes. Straits shareholders would also be offered the opportunity to purchase up to A$15-million worth of shares in Ancoa’s proposed capital raising.

Emu shareholders would also be offered a priority right to participate in the capital raising.

Straits acquired the Hillgrove project in 2004, and has since been pursuing an aggressive development plan, encompassing additional resource definition, metallurgical test work and design and mine planning.

During 2006, the Straits board gave approval for the development of Stage 1 of the project, with the construction of a demonstration process plant starting soon after.

However, production was significantly below design levels owing to a number of issues in the processing plant, and operations were suspended in 2009. Since then, Straits has been working on the technical issues at the operation.

Emu said on Wednesday that it would recommission mining operations at Hillgrove by the second quarter of 2013, driven by a reconstituted board.

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