Speciality Metals clinches key purchasing agreement

Published at Dec 20, 2017, in Small Caps

Speciality Metals (ASX:SEI) has entered into a binding heads of agreement with Mt Carbine Quarries Pty Ltd, to purchase the Mt Carbine Quarry and Mining leases (ML 4919 and ML 4867), which are integral to SEI’s successful development of the nearby Mt Carbine Tungsten project in north Queensland.

The agreement will provide SEI with vital cash flow via the existing quarry business at ML 4919, while also providing for the use of the lease’s existing quarry infrastructure in the company’s future mining operations.

However, it should be noted here that SEI is a speculative stock and investors should seek professional financial advice if considering this stock for their portfolio.

The parties have agreed to execute a contract of sale by mid-March 2018.

Both leases are located within SEI’s Iron Duke Prospect (as shown below), where recent mapping and sampling have indicated exceptional strike length.

mount carbine tungsten

Source: Specialty Metals

“The purchase of these Mining leases will enable Speciality Metals to extend its footprint at a time when demand for Tungsten continues to rise,” SEI’s Executive Chairman Russell Krause said.

The tungsten APT (ammonia para tungstate) reached a high of US$335 (per 10kg MTU) in the third quarter of 2017. One of the major factors behind current demand is the restriction of supply in China, which has increased production costs for tungsten concentrates.

As a result, SEI has engaged in preliminary discussions with several offtake parties and is investigating the feasibility of recommencing production at its Tailings Retreatment Plant.

The Mt Carbine project covers ~367 hectares, with the historical Mt Carbine mine located 130km from Cairns.

Recent name change

Speciality Metals (ASX:SEI) was formerly known as Carbine Tungsten Limited (ASX:CNQ), with the name change taking place earlier this month.

The company aims to become a leading Australian tungsten producer and currently holds a diverse portfolio across New South Wales, north Queensland and Chile.

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.

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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.

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