Niuminco buys remaining Eddie Creek stake
PERTH (miningweekly.com) – ASX-listed Niuminco has moved to take full ownership of the Eddie Creek gold/silver mining lease, in Papua New Guinea.
The company currently holds an 83% interest in the project, and has struck a deal with former joint venture partner Mincor Resources to acquire the remaining 17% interest for A$150 000.
The purchase consideration will be payable two years from the completion date of the transaction, in either cash or shares, or earlier should Niuminco sell the leases to a third party.
“We are pleased to take 100% control of the Eddie Creek mine as we now move towards greater processing capacity on completion of the current plant upgrade,” said Niuminco MD Tracey Lake.
Niuminco is currently working to increase production up from the pilot mining and production operation, which was started in early 2014, targeting a mining and processing throughput rate of between 40 t/d and 60 t/d.
Niuminco recently revealed plans to spin-off its 72.1%-held TNT Mines, which holds tin and tungsten assets in Tasmania, through an initial public offering (IPO) on the ASX.
Some 27.5-million shares would be issued at 20c each, with the aim of raising A$5.5-million. The funds would be used to advance exploration and development of TNT’s Tasmanian deposits, to repay some A$956 000 in loans owed to Niuminco, and to provide the company with working capital and with funds to evaluate new investment opportunities.
After a successful IPO, TNT will have an implied market capitalisation of A$6-million with about A$4-million in cash after the costs of the issue and after repaying all outstanding debt.
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