PERTH (miningweekly.com) – Mineral sands miner Sheffield Resources has completed the divestment of its Eneabba project to fellow-listed Image Resources, having received the final A$1-million cash consideration for the project.
The two companies last year struck a A$24-million agreement that saw Sheffield divest of the Western Australian mineral sands project.
Eneabba contains a mineral resource estimate of 211-million tonnes, at 3% total heavy minerals, for 6.3-million tonnes of contained total heavy minerals. The package consists of eight exploration licences, three mining leases and one retention licence, covering eight project areas.
Image in March also completed the acquisition of the 84-million-tonne heavy minerals McCalls project from Sheffield for A$12-million.
Sheffield said on Wednesday that cash proceeds from the Eneabba and McCalls transactions are not expected to result in any material tax liability for Sheffield, with proceeds partially offsetting the Group’s carried forward tax loss position.
Proceeds will be applied toward Sheffield’s A$10-million obligation to Kimberley Mineral Sands payable within 60 days following a final investment decision for the Thunderbird mineral sands project, plus any additional shared joint venture equity contribution, which is currently estimated as A$26-million, as well as corporate purposes.