PERTH (miningweekly.com) – Copper/gold miner Sandfire Resources has increased its shareholding in TSX-V-listed Tintina Resources by a further 16.9%, to 78.1%.
Sandfire on Monday told shareholders that the acquisition of this strategic stake from fellow shareholder Electrum Global Holdings further consolidated the company’s ownership position of one of the world’s premier high-grade undeveloped copper projects in the Black Butte copper project, in Montana.
MD Karl Simich said that the acquisition of Electrum’s holding at a total purchase price of A$7.1-million, reflected the company’s long-term commitment to support and drive the responsible development of the Black Butte project as a world-class underground copper mine.
“The acquisition is equivalent to around $3c/lb of contained copper in resource. By any measure, this means we have acquired close to 80% of substantial high-grade copper resource comprising almost 600 000 t of copper at a very attractive cost.”
Simich said that given the positive outlook for copper as the market continues to tighten, Sandfire saw the acquisition as a great opportunity to consolidate its growth pipeline with an asset that has the potential to deliver high-grade, low-cost production for several years into the future.
“At the same time, the development of Black Butte represents an opportunity to bring significant jobs and economic opportunities to the state of Montana and to showcase a world-class development plan which is consistent with our own environmental credentials.”
The Black Butte project is a key part of Sandfire’s long-term strategic growth pipeline, and is estimated to hold a mineral resource of some 15.7-million tonnes, grading 3.4% copper for 533 600 t of contained copper.