Pacifico seals the deal at Sorby Hills to become majority owner
Pacifico Minerals Ltd (ASX:PMY) has finalised a Binding Terms Sheet with Quintana MH Holding Company LLC to obtain all of the shares in KBL Sorby Hills Pty Ltd and Sorby Management Pty Ltd.
KBL Sorby Hills Pty Ltd owns 75% of the Sorby Hills project with China’s largest lead smelting company and silver producer Henan Yuguang Gold & Lead Co. Ltd (“HYG”) owning the remaining 25%.
With all conditions precedent having now been satisfied or waived since the original agreement was struck in June, the acquisition has been completed.
This sees Pacifico as the majority owner of the largest undeveloped near surface lead-silver-zinc deposit in Australia on granted mining licenses with environmental approval in Western Australia.
Importantly, the project has been significantly de-risked with extensive resources as outlined below and a prefeasibility study already undertaken.
It is worth noting that the ore is situated close to surface which could potentially provide Pacifico with a high margin operation.
Commenting on the company’s near term strategy, Pacifico’s Managing Director, Simon Noon said “The acquisition of Sorby Hills is an exciting step forward for Pacifico and provides us with a high-quality cornerstone asset.
“With the transaction now completed Pacifico will shortly commence extension and infill drilling at the project, aimed at significantly upgrading the Resource.
“The company looks forward to providing further details of the upcoming drilling program prior to commencement which is planned to take place in around two weeks.”
Of course any results from this program are speculative at this stage, so investors should seek professional financial advice if considering this stock for their portfolio.
Excellent infrastructure access
The project is only 50 kilometres by road from the mining hub of Kununurra.
Should the company move to production, there are established roads to transport concentrate via road train from the Sorby Hills site to the facilities at Wyndham Port, approximately 140 kilometres.
Operations will utilise existing port facilities, with no additional infrastructure required to enable shipping of concentrate.
Pacifico also has interests in Mexico where the company is advancing the Violin Gold-Copper Project located within the Guerrero Gold Belt.
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.
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.