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Pacifico seals the deal at Sorby Hills to become majority owner
2 minute read
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.