Photo by: Reuters
PERTH (miningweekly.com) – ASX-listed Sunstone Metals has enacted an earlier letter of intent to divest of its Viscaria copper project, in Sweden, in a transaction valued at A$47.3-million.
Under the terms of a binding share sale and purchase agreement with Swedish listed Copperstone Resources, Sunstone will receive an initial 40-million kronor and 160-million Copperstone B shares on the completion of the transaction.
On the receipt of an environmental permit for the Viscaria project, the company will receive a further 20-million kronor and 46-million Copperstone B-shares.
At the current exchange rates and the volume-weighted average price of Copperstone shares, the transaction is valued at about A$47.3-million.
A 2016 update to the scoping study at Viscaria found that the project could produce 200 000 t of copper over a mine life of nine years, or some 21 000 t/y of copper, based on a two-million-tonne-a-year operation.
The updated scoping estimated a capital investment requirement of some $130-million, with pre-tax net present value at the time estimated at more than $150-million, and the internal rate of return as more than 28%.
Subject to permitting, the project is expected to start production in 2020.