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PERTH (miningweekly.com) – Diversified miner Independence Group will divest of its Stockman copper-zinc project, in Victoria, to CopperChem for A$47.2-million.
The company on Wednesday said the sale of the Stockman project was consistent with its strategy of focusing on high-quality assets of scale, longevity and geographical focus, where Independence could leverage its operational expertise and discipline to unlock growth opportunities.
“Independence remains committed to the creation of long-term shareholder value through the development and operation of a quality portfolio of assets with scale, longevity and geographical focus,” said MD Peter Bradford.
“With the significant continued growth of Independence, including the ramping up of the Nova operation to reach nameplate capacity in the September quarter, the development of the Stockman project is not consistent with this strategy.”
The sales price will comprise A$32.2-million in cash and a 1.5% net smelter return royalty with a provisional value of up to A$15-million, which will then be converted to an uncapped 1% net smelter return royalty.
Independence’s initial plans for the Stockman project would have seen the concurrent development of the two underground deposits to feed a one-million-tonne-a-year differential flotation concentrator that could produce around 150 000 t/y of copper and zinc over a mine life of ten years.
“Although Independence recognises the value of the Stockman project, CopperChem is ideally positioned to continue its exploration and development, while we have retained upside exposure,” Bradford said.
The transaction was subject to a number of conditions, including ministerial approval. Completion of the transaction has been targeted for the September quarter.