PERTH (miningweekly.com) – ASX-listed Consolidated Tin has transitioned from explorer to producer after shareholders this week approved the acquisition of the Snow Peak Mining assets.

In July, Consolidated Tin entered into a memorandum of understanding with Snow Peak Mining to acquire that company’s assets in exchange for 600-million fully paid shares and a A$16.5-million convertible note to Snow Peak Mining.

The convertible note would be converted into 165-million ordinary shares and would be redeemable on, or before, September 1, 2015.

Upon the completion of the transaction, Snow Peak Mining would hold a 68% interest in Consolidated Tin.

The Snow Peak assets included the one-million-tonne-a-year Mt Garnet concentrator, in Queensland, the Mt Garnet mine, the Surveyor mine, the Maitland and Einasleigh projects, the Baal Gammom mineral rights agreement, all plant and equipment and associated mining tenements.

The mining assets were brought into production, from care and maintenance, in November 2013, and to date about 450 000 t of copper and polymetallic ore had been extracted from the operations and processed, producing about 380 000 t of ore containing zinc, copper and lead concentrates, with a silver by-product.

At January 13, over 27 000 t of copper, zinc and lead concentrates had been shipped to customers in China, and over 11 000 t of zinc concentrate had been stored and were ready for load, along with over 7 000 t of concentrate stored at Mt Garnet.

The Mt Garnet underground mine was brought back into production in August of last year, and some 90 000 t of primary zinc ore had been extracted.

The Mt Garnet mine was now on hiatus during the wet season, with plans to restart mining after the wet season. The Surveyor mine was still operating, and supplying the Mt Garnet concentrator with sufficient stockpiled ore to maintain continuous operations.

With shareholder approval now secured, Consolidated Tin has taken operational control of the assets with immediate effect.

“Shareholder approval of the proposed Snow Peak Mining assets acquisition marks another significant milestone in the Consolidated Tin strategy to rapidly develop the Mt Garnet tin project through the acquisition of an operating and revenue generating mining business with latent processing capacity that is only 8 km from the Gilian and Pinnacles tin resources that comprises the Mt Garnet tin project,” said Consolidated Tin MD John Banning.

He noted that the acquisition was the key enabler for the company to develop its high margin cornerstone tin project.

“The Mt Garnet tin project, coupled with the operating base metals assets and project pipeline, and the Wanguo exploration agreement across highly prospective tenement, positions Consolidated Tin with a solid foundation to deliver tin production, growth and diversification.”

With the Snow Peak Mining assets in production, Consolidated Tin was expected to deliver about 25 000 t of zinc, 2 500 t of copper, 6 000 t of lead and around 209 000 oz of payable silver during the full 2014.