Polymetals Resources secures $5 million investment from Metals Acquisition for Endeavor Mine
Melbourne, Victoria
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May 27, 2024 06:45 PM Eastern Daylight Time
Polymetals Resources Ltd (ASX: POL) managing director Dave Sproule joins Proactive’s Jonathan Jackson to discuss a non-exclusive strategic alliance with Metals Acquisition Ltd (ASX: MAC). This partnership aims to enhance value extraction from the Endeavor Mine and CSA Copper Mine, in the Cobar Basin, NSW, Australia. As part of this alliance, MAC will invest up to $5 million in Polymetals at $0.35 per share. The two companies will enter into an agreement to treat high-grade zinc ore from MAC’s CSA mine at Polymetals' Endeavor Silver-Zinc Mine. Additionally, Polymetals will provide MAC with excess water offtake, which will help increase the ore treatment capacity at the CSA mine. The strategic alliance is designed to exploit operational synergies between these neighbouring mines, with the goal of enhancing production and financial outcomes. Sproule, expressed confidence in the partnership, highlighting the benefits for all stakeholders. He noted that Polymetals had operated in the Cobar Basin for many years and that the collaboration with MAC was expected to unlock significant value through existing synergies and other opportunities as the relationship develops. He emphasised that bringing the Endeavor Mine back into production would be a positive outcome for NSW and the Cobar community, creating more than 200 direct jobs and injecting around $50 million a year into the local economy for at least the next 10 years. He also mentioned the potential to extend the mine's life through ongoing optimisation, exploration success, and value-adding treatment options. With the ability to defer the environmental bond replacement for up to two years and taking full ownership of the Endeavor Silver-Zinc Mine operating assets, Polymetals is now positioned to complete the optimisation and restart financing for the mine. The company plans to commence refurbishment works in early H2 2024, with the first concentrate output expected during H1 2025.
Contact Details
Proactive Investors
Jonathan Jackson
+61 413 713 744
