Photo by: Bloomberg
TORONTO (miningweekly.com) – Canadian base metals project developer Duluth Metals on Monday said it had appointed financial services provider and financial adviser Barclays to undertake a thorough evaluation of its strategic alternatives.
Toronto-based Duluth last week gained a controlling interest in its flagship Twin Metals Minnesota (TMM) copper/nickel/platinum-group metals (PGM) project, after joint venture (JV) partner Antofagasta formally issued a ‘25% option termination notice’.
With the notice in hand, the JV immediately moved to the ‘40/60 phase’, during which Duluth had 180 days to buy Antofagasta’s 40% interest at a price equal to its sunk costs. This was estimated to be about $220-million, as well as about $10-million currently outstanding under the bridge loan.
Wallbridge Mining, a significant shareholder of Duluth, also reported on Monday that it was “extremely pleased” that Duluth had regained control of the project from Antofagasta. Wallbridge founded Duluth Metals in 2005 to finance the exploration and development of its Minnesota properties. Wallbridge is currently the second-largest shareholder in Duluth, after Antofagasta.
“Clearly, this opens the door to a variety of potential new investors who might want to own a significant portion of one of the world's largest undeveloped copper/nickel/PGM deposits in a politically stable portion of the world,” Wallbridge president and CEO Marz Kord said.
Duluth is expected to release a prefeasibility study on TMM later this month.