Investors in Queensland Mining (ASX:QMN) got an unexpected surprise Monday morning after the company announced Friday it was selling its White Range copper, gold and cobalt project.
The stock was up by a third, or 33.3% in the green as of mid-morning in Australia. (trading was delayed at 11:27 am) The buyer, unlisted Moly Mines Limited, picked up the property in northwestern Queensland for A$53 million, which includes A$45 million in cash and A$8 million in convertible notes. Queensland Mining has been trying to develop the asset for two years and told investors the offer was too attractive to refuse, according to Australia-focused investment website Stockhead.
The potential mine has three main deposits – Greenmount, Kuridala and Young Australian – and four exploration permits that are part of an option and joint venture agreement with Teck Australia Pty Ltd. It has a JORC-compliant resource of 29.2 milion tonnes at 0.82% copper, 0.18 grams per tonne gold and 0.03% cobalt. A 2005 prefeasibility study showed potential for annual production of up to 20,000 tonnes of copper cathode over a minelife of 10+ years.
Source: www.mining.com
