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Reed sells off zinc royalty over Nimbus

24th September 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Metals Miner MacPhersons Resources has reached an agreement with Reed Resources to extinguish a 1% zinc royalty over the Nimbus project, in Western Australia.

Reed told shareholders on Tuesday that it had agreed to extinguish the royalty in exchange for A$200 000 worth of MacPhersons’ shares, based on the five-day volume-weighted average price of MacPhersons shares.

“The extinguishment of royalties provided a win-win outcome for both parties,” said MacPhersons MD Morrie Goodz.

“By removing all non-regulatory royalties and overheads, the company has prioritised shareholder returns. We are now very much focused on our production plan for 2014,” he added.

In February, MacPhersons started the tendering process to expand its Nimbus silver/zinc/gold project after optimisation studies confirmed the viability of merging the original two openpit operations into a single silver superpit. The pit optimisation studies increased the Nimbus resource by some 46%, to 4.4-million tons, grading 129 g/t silver equivalent for 18.3-million ounces of silver.

The miner has previously approved the expansion of the Nimbus plant by introducing a new 480 000 t/y plant, allowing for early production from gold and zinc streams, and for the co-treatment of ores from various sources.

Edited by Creamer Media Reporter

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