Western Metals to acquire UK Copper-Zinc project

Western Metals Ltd has announced that it has signed a Term Sheet to acquire 100%...

  Western Metals Ltd has announced that it has signed a Term Sheet to acquire 100% of the advanced Parys Mountain copper-zinc Project on the island of Anglesey in North Wales from Anglesey Mining plc, a UK based mining company listed on the London Stock Exchange.The transaction is subject to a maximum 120 day due diligence and on successful completion Western Metals will sign a formal sale agreement and pay Anglesey Mining AUD$7.6m in a combination of cash and shares. On the completion of a successful bankable feasibility study or 3 years whichever is earliest, Western Metals will make a final payment of AUD$21.5m in a combination of cash and shares. The proposed Parys Mountain acquisition reflects the Company’s stated objective of securing an advanced exploration and development opportunity with early cash flow potential. The Parys Mountain region has been one of Britain’s biggest producers of copper, reportedly yielding in excess of 300,000 tonnes of metal before mining ceased in the early 20th Century. The Project has had significant modern exploration, definition and infrastructure established. The key aspects of this work include: Surface Drilling 60,400 metres Underground Drilling 10,800 metres Shaft Sunk 300 metres Underground Development 900 metres Pilot Processing Plant 800 tonnes Exploration / Development Expenditure ~ AUD$29 million The Project has current planning approvals for a 1,000 tonne per day operation and enjoys strong community and government support. Western Metals’ Managing Director George Bauk said Parys Mountain offers an outstanding opportunity for Western Metals to achieve its aim of becoming a significant metals producer. “We have consistently stated our intention to acquire a high quality asset with near-term production potential that will complement our portfolio of world-class exploration assets” he said. “We believe Parys Mountain represents just such an opportunity.” Western Metals intends to fast-track work programmes including drilling to establish JORC compliant resources and concurrently proceed with a formal feasibility study. Current project schedules estimate completion within 2 years at a cost of AUD$12 - $15m. Mr Bauk said Western Metals’ management team possessed the extensive project development and operating expertise needed to quickly and successfully advance the Parys Mountain Project whilst also maintaining an aggressive exploration strategy in the Company’s other projects in Tanzania, Queensland and the Americas. “We have the team and the cash to take this Project on immediately,” he said.