PERTH (miningweekly.com) – ASX-listed Korab Resources has announced plans to fast-track the development of the Winchester magnesium carbonate deposit, in the Northern Territory, with the company to divest of some of its other assets.
Korab in March this year announced a review of its Western Australian and Ukrainian operations, which considered joint ventures (JVs), as well as partial or outright sales.
The company told shareholders this week that it had entered into discussions with a number of parties regarding the sale of its Bobrikovo gold/silver mine, the sale of its Pilbara conglomerate assets, and the sale or JV of its Mt Elephant project.
Korab also added its Geolsec phosphate project, in the Northern Territory, to the review pile, with the aim of sub-leasing the quarry to another operator while retaining ownership of the project and the mining lease on which it is located.
The company said in a statement that the divestment of its other assets would allow Korab to focus its resources on the Winchester project.
Furthermore, Korab would also place up to four-million shares, priced at 5c each, to raise capital to fast-track key milestones in the development of the Winchester project, including the preparation of a final mine management plan, arranging debt funding, and securing offtake partners for the direct shipping ore output from the project.
The remaining funds would be used to reduce the company’s liabilities, and for general working capital.
A recently released feasibility study estimated that the Winchester project would require an investment of between $2.4-million and $2.5-million to develop a mine that could operate at various capacity levels, from 375 000 t/y to a run-of-mine capacity of one-million tonnes a year.
The study estimated an earnings before interest, taxes, depreciation and amortisation of between A$613-million and A$614-million over the life of the project, with the project’s net present value estimated at between A$184-million and A$185-million.