Speciality Metals adds to revenue stream with strategic acquisition
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:
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.