Speciality Metals adds to revenue stream with strategic acquisition

By Jonathan Jackson. Published at Apr 18, 2018, in Small Caps

Speciality Metals (ASX:SEI) has achieved a significant milestone this morning, having executed a Sale and Purchase Agreement (SPA) with Mt Carbine Quarries Pty Ltd.

The Agreement covers the acquisition of the Mt Carbine Quarry including all plant and equipment, along with Mining Leases ML 4867 and ML 4919.

Terms of the contract remain in-confidence, however SEI expects to have the SPA settled by late July with the required deposit being paid today.

The Mt Carbine Quarry acquisition lands SEI an invaluable revenue stream as it looks to expand its exploration portfolio and become the pre-eminent Australian tungsten producer from the historic Mt Carbine Tungsten Mine in Far North Queensland.

It is early stages here, so investors should seek professional financial advice if considering this stock for their portfolio.

The Mt Carbine Tungsten Mine consists of the Iron Duke and Petersens Lode Exploration Permits.

SEI, formerly Carbine Tungsten Limited (ASX:CNQ) has several projects it is working on, including:

  • Lithium and other valuable mineral resources such as potassium, iodine and boron contained in subsurface brines within its Chilean exploration concessions;
  • Gold Exploration Licences (Panama Hat and Crow Mt) in New South Wales, Australia.

Read further about this diversification:

SEI Executes its Diversified Metals Strategy with Tungsten, Lithium & Gold Assets

Executive Chairman of Speciality Metals, Mr Russell Krause stated, “A major milestone has been reached today with the execution of the SPA for the purchase of the Mt Carbine Quarry and Mining Leases with MCQ. Whilst the terms of the SPA cannot be disclosed at this stage the Board is seeking to finance a large portion of this transaction using a combination of offtake and debt funding.

“In this regard negotiations are well advanced with several interested offtake and debt funders in an attempt to minimise the transaction’s dilutionary impact upon existing shareholders. The Company is also continuing to progress and refine its plans for recommissioning the Tailings Retreatment Plant along with its intention to commence early production via the use of ore-sorting technology and high-grading the ore contained within the Low Grade Stockpile. The relatively firm European Tungsten APT price (Ammonium Paratungstate) has also greatly assisted in the negotiation process having restored a degree of confidence in the tungsten market. As at 16 April 2018 the APT price was sitting at US$323 – US$328 (per 10kg MTU).

“Despite the process taking a little longer than initially anticipated both parties are extremely pleased with the progress made to date.

“The Board is extremely excited to have reached this important milestone. We are all working tirelessly to ensure that the SPA is completed within the stipulated timeframes and that the Company is in a position to re-awakening its world-class Mt Carbine Tungsten Project and take full advantage of the synergies between the Quarry and the Company’s future mining activities.” Mr Krause concluded.

Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!