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Metallica sells Urquhart

3rd November 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Junior Metallica Minerals has taken the decision to divest of its 50% interest in the Urquhart bauxite project, in the Cape York Peninsula, to private purchaser Clear Logistics Australia.

Under the terms of the agreement, Metallica would receive an initial A$50 000 in cash, with a further A$50 000 payable within 30 days of signing a share sale agreement over Metallica subsidiary Oresome Australia.

A milestone payment of A$100 000 will become due on the shipment of the first one-million tonnes of ore from Urquhart and an additional A$100 000 on the shipment of the second one-million tonnes of bauxite from the tenement.

Royalties on both bauxite and sands produced at the project would also be payable.

“We sought interest from a number of parties, the offer from Clear Logistics was superior to other potential offers,” said Metallica executive chairperson Theo Psaros.

“The decision to sell Oresome was not taken lightly. In addition to the tough bauxite market conditions, we are of the strong view that to continue using shareholder funds to maintain a 50% share during such uncertain bauxite market conditions is not in the company’s interest.

“We are encouraged with the progress of our Cape Flattery silica sands project, and subject to finalization of the traditional land owner agreement, we expect to be drilling in the near future.”

Edited by Creamer Media Reporter

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