PERTH (miningweekly.com) – Base metals hopeful New Century Resources has moved to take full ownership of the Century Zinc mine, in Queensland.
The junior company on Monday said that it would acquire the remaining 30% interest in the project by acquiring privately owned Century Bull, which holds not only an interest in the mine, but also all assets associated with the mine, as well as the supporting logistics infrastructure.
In exchange for the 30% interest in the Century Zinc mine, New Century would issue 126-million ordinary shares and 35-million options, with a three-year expiry date and an average exercise price of 42c a share.
New Century told shareholders that subject to approvals, all other requirements associated with the current earn-in agreement between the two companies would be extinguished as part of the new transaction, including the requirement for New Century to commit A$10-million in project development expenditure to earn an initial 70% interest in the project.
The Century mine was the third-largest zinc mine in the world prior to its closure in 2016.
New Century is currently considering a tailings operation at the project area, to treat the 78.9-million tonnes of resource at the project, which is estimated to contain some 2.38-million tonnes of zinc, 370 000 t of lead and 31.5-million ounces of silver.