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Metallica looks at Solomon Islands

30th April 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Metallica Minerals has secured exclusivity over the Wagina bauxite project, in the Solomon Islands.

The company on Monday reported hat it would provide project owner South West Pacific Bauxite with a A$120 000 loan, in exchange for an option to carry out exclusive due diligence on the Wagina project, with a view to ultimately completing a transaction over the project.

The loan will have a term of 12 months, and an interest rate of 15% a year.

Metallica MD Simon Slesarewich told shareholders that while progressing its own Urquhart bauxite project, in Queensland, towards production, Metallica has also been canvassing growth options to increase its production profile to between five-million and seven-million tonnes a year of bauxite, over three to five years.

The initial assessment of the Wagina project suggested that it could meet Metallica’s criteria as an advanced, long-life, low-cost asset with the potential to deliver significant long-term value for shareholders.

“After an extensive and disciplined search in Australia and overseas, we are excited to have identified the Wagina bauxite project as an asset that is potentially the right fit for the company,” said Slesarewich.

“This project has the ability to significantly extend our current reserve life and lift the production profile beyond what Urquhart will deliver when it comes online.”

Previous studies at Wagina have suggested that the project could produce between two-million and three-million tonnes a year of bauxite, over a mine life of more than ten years.

The 30-million-tonne bauxite resource is contained within a granted mining lease.

Edited by Creamer Media Reporter

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