PERTH (miningweekly.com) – ASX-listed junior Artemis Resources has completed the acquisition of the Radio Hill nickel/copper/cobalt project, in Western Australia, along with $2-million of overseas institutional funding.
In order to fund the Radio Hill acquisition, Artemis entered into a $2-million funding agreement by way of the issue of convertible securities with an aggregate face value of $2-million with a consortium of investors.
The loan agreement has a maturity date of 16 months, and has a commitment and implementation fee of 9%, while the convertible securities have a fixed conversion price of 12c per fully paid ordinary share, subject to certain conditions.
Artemis acquired the Radio Hill project from Fox Resources for A$2-million in cash and the issue of 20-million Artemis shares. An independent review revealed in April that the project would require some A$4.6-million to refurbish to operational readiness.
The asset includes the 425 000 t/y Radio nickel and copper processing plant, a tailings storage facility, administration and maintenance buildings and a fully developed underground mine, which was placed on care and maintenance in 2008.
The project has a nickel/copper resource of 4.02-million tonnes, grading 0.51% nickel and 0.88% copper, with significant exploration upside potential.
“For the first time in the Karratha region, we now have a company that controls a large tenement package around a 'hub and spoke' play with the key Radio Hill multi-metals metallurgical process plant being at the centre of a number of growing cobalt, nickel, copper, zinc and gold deposits,” said Artemis executive chairperson David Lenigas on Friday.
“It should also add significant value to the potential development of our new Carlow Castle cobalt discovery. In addition, this acquisition brings to book some exciting iron-ore deposits and a large quarry inventory at the Radio Hill mine site that can contribute considerably to the new road and mining infrastructure being planned for the Karratha region.”