WMN gets key extension in Indonesia
Western Mining Network (ASX:WMN) will have a bit more time to get its ducks in a row on a key Indonesian acquisition – at no cost to the company.
Earlier this year it announced that it would gain 100% of Indonesian company GT Grafindo Nusantara (GTN) in exchange for 25 million newly issued shares with no cash outlay.
It told its investors today that the deadline on the deal had been extended to the end of this year, with WMN not having to put up any additional capital to secure the delay.
The delay of the deal gives more time for WMN to cross its Ts and dot the Is, and to generally work through the detail.
In exchange for acquisring GTN, WMN will get its hands on two prospective graphite tenements in Indonesia.
These tenements include one with an inferred resource of nearly 8 million tonnes, with a mean total graphitic content of 12.7%.
It also has a mining license for that resource valid until July 2023.
While it has other projects on its plate in Indonesia, further drilling at both of the tenements would move some of the inferred resource into the indicated and measured categories.
However, at this stage it has not outlined a firm drilling program at these tenements.
It also recently completed a $6 million capital raising, which on boarded new cornerstone investor Lanstead Capital LP.
The WMN game plan
Earlier this year WMN unveiled its plan in Indonesia to build two mini-plants capable of producing five tonnes of graphite per day at it Kalimantan and Sulawesi projects.
The plants will reportedly be capable of producing varying degrees of graphite, with low grades going for less than $US1000 ($A1408.04) to $10,000.
The lower grade graphite will simply require more conventional beneficiation techniques such as crushing, milling, agitation, and floatation.
The higher-end processing is planned to be farmed out to its partners, including South Korea-based Carbon Nano Tech.
However, to get the ball rolling WMN wants to build two mini plants based at the two projects.
WMN CEO David Putnam has been working since he was appointed in July this year to tie up funding for the next stage of the WMN plan.