PERTH (miningweekly.com) – ASX-listed Superior Lake Resources has completed the divestment of its namesake zinc project, in Ontario, into TSX-V listed company Metallum Resources Inc, which was previously known as CROPS.
Superior Lake last year flagged plans to vend its interest in the project to Metallum after failing to secure project financing, a declining zinc price, and travel restrictions imposed by the Covid-19 pandemic, which made it difficult for the Australia-based project team to make it to site.
In return for the Superior Lake project, Metallum, which started trading on the TSX-V earlier this week, issued Superior Lake with 128.9-million shares, representing a 67% interest in the issued capital of Metallum, as well as A$0.75-million in cash.
“We believe the transaction is a great outcome for shareholders, as Superior Lake Resources retains significant exposure to a world-class zinc asset under the control of a proven Canade-based management team, which is essential in the current Covid-19 environment,” said Superior Lake executive director Grant Davey.
“Since announcing the divestment last year, market conditions for zinc have improved significantly, with the zinc price increasing while the TC/RC pricing has fallen significantly. We are supportive of Metallum’s initial strategy which is to test a number of highly prospective exploration targets, that will hopefully see an increase in the mine life prior to a development decision being made.”
Davey said that with the transaction now completed, Superior Lake’s sole focus would be on acquiring a new project, with the major criteria being an asset with company-making potential.