One of Australia's former large and high grade nickel laterite mines is being acquired by Metallica Minerals Limited in an expansion of the company's flagship nickel cobalt portfolio and planned mining precinct between Townsville and Cairns.
A combined total consideration of AUD 1.65 million will go to Straits Resources Limited and Resource Mining Corporation to acquire all of their JV ownership of the three Greenvale tenements, EPMs 11223, 10680 and 10866 which comprise the historic Greenvale nickel mine and its immediate surrounds Metallica's 100% owned subsidiary Greenvale Operations Pty Limited will hold 100% of the Greenvale tenements.
The Greenvale acquisition price totals AUD 650,000 cash and 3.33 million Metallica ordinary shares at a deemed price of AUD 0.30 per share. The Greenvale assets are immediately south of Metallica's Kokomo deposit which together with the Minnamoolka and Bell Creek deposits to the north, comprise the Company's advanced NORNICO nickel cobalt project.
Because of existing mining, infrastructure in the region and the upside of near surface remnant and stockpiled nickel mineralization at the Greenvale Nickel mine, the Company believes the acquisition presents the option to move to nearer-term maiden production of high grade Ni Co ore through a modest-scale commercial plant at the Greenvale Mine.
Mr Andrew Gillies MD of Metallica said that "This is a significant consolidation and enhancement of our resource base, exploration and mining potential at NORNICO as the Greenvale project contains a very strategic and significant remnant nickel mine resource. This resource will considerably add to Metallica's 100% owned NORNICO project Ni Co deposits immediately to the north and potentially provide high grade feed for an initial production start up as well as being an excellent mining and processing site for future NORNICO operations."
He added that "The site is one we have been keen on for quite some time, as the mine area is well served by sealed roads, close proximity to the Greenvale township and associated water and power infrastructure and is only 2.5 hours drive from Townsville. Our feasibility and development team is currently assessing the opportunity for a modest size atmospheric acid leaching operation as NORNICO Stage 1 something in the order of 100,000 to 150,000 tonnes per annum on the Greenvale mine site."
