PERTH (miningweekly.com) – An independent valuation of the Luapula processing facility, in the Democratic Republic of Congo, has estimated an asset value of more than $33.3-million, on an as-is basis.
Cobalt hopeful Winmar Resources last year struck a deal with African Holding Investment Company to acquire a 50% interest in the Luapula cobalt processing facility, which was constructed in 2014 at a capital cost of $80-million, is a conventional copper/cobalt leaching plant with a throughput capacity of 250 000 t/y of run-of-mine feed.
The plant, which was placed on care and maintenance in 2016, has the capacity to produce 12 000 t/y of high-grade concentrates, comprising a 30% to 40% cobalt hydroxide product and a 15% to 20% copper hydroxide product.
An independent audit into the Luapula facility found that it could be restarted at a capital cost of only $5.8-million, within a four- to six-month timeframe.
Winmar on Tuesday told shareholders that the independent valuation ‘strongly’ vindicated the company’s decision to acquire a 50% interest in the processing facility.
The valuation also confirmed that there were "no fatal flaws with the projects and the risks for the project can be managed", while also confirming that the power, water and infrastructure necessary to support the project were available.
The independent valuation is part of Winmar’s attempts to address concerns raised by the ASX, and its efforts to relist on the Australian bourse in order to complete the proposed acquisition.