DJ NQ Minerals PLC Investment in Tasmania Energy Metals
RNS Number : 1575B
NQ Minerals PLC
05 June 2019
5 June 2019
NQ Minerals Plc
(the "Company" or "NQ Minerals")
Investment in Tasmania Energy Metals
NQ Minerals Plc (NEX: NQMI) (OTCQB: NQMLF), a mineral processing, exploration and mining company is pleased to announce that it has made a strategic investment in a private Tasmanian mining company, Tasmania Energy Metals Pty Ltd ("Tasmania Energy Metals"), to enhance the Company's operations and prospects.
As part of this strategic investment Tasmania Energy Metals and NQ are evaluating whether it is commercially and financially viable to develop an integrated facility. This facility would utilise the main by product from the treatment of the pyrite/precious metals concentrate produced from the Hellyer Mine ("Hellyer"), being sulphuric acid, in the production of nickel-cobalt. Sulphuric Acid is the largest single cost in the treatment of nickel-cobalt contained in lateritic surface deposits. The facility would enable NQ to recover the precious and base metals contained in its pyrite/precious metals concentrate, which the Board believe to be more valuable to the Company than the sale of the pyrite.
NQ Mineral's initial investment in Tasmania Energy Metals of GBP150,000 is in the form of a convertible loan note (the "Convertible Loan") to finance the ongoing costs of assessing whether an integrated facility would be viable, including commencing environmental and metallurgical assessment.
Under the agreement, Tasmania Energy Metals has also granted NQ Minerals an exclusivity period up to 31 July 2019, in which NQ Minerals has the right to take up a binding option to acquire all of Tasmania Energy Metals' assets, including the nickel-cobalt licenses and 100% control of the integrated minerals processing facility that is being developed, via the issue of Ordinary Shares in the Company to a value of GBP5.5 million.
The Convertible Loan has a repayment term of three years and carries no interest. NQ Minerals has the discretionary right to convert the Convertible Loan into shares of Tasmania Energy Metals during the time three-year term.
The long term strategy of the Company is to acquire assets which enhance the life of mine at Hellyer. As part of this strategy, NQ Minerals, through its subsidiary Pieman Resources Pty Ltd, recently won a competitive tender over the Chester Mine. Chester is a historical pyrite mine located just 25km from the Hellyer mill. This now forms part of license application EL5/2019. Once granted, the Company will commence exploration with a view to integrating the Chester mineralisation into its future production plans.
Brian Stockbridge, Non-Executive Chairman of NQ Minerals, commented:
"Extracting further value from our existing concentrates is a low-risk way to enhance revenues and shareholder returns.
"Now that we have successfully achieved commercial concentrate production at Hellyer, it is a natural extension to target downstream recovery of base and precious metals. Our pyrite/precious metals concentrate contains high grade gold, silver and zinc values and we believe this joint project could facilitate a significant increase our returns, whilst expanding our Tasmanian presence and creating a sound environmental footprint."
About NQ Minerals
NQ Minerals is an Australia-based mining company which commenced production in Q4 2018 at its flagship Hellyer Gold Mine. The Company anticipates strong cash-flow and profitability from Hellyer and has a portfolio of exciting exploration prospects. The Company's management team has decades of experience in the exploration and production of gold, silver and a variety of base metals. Please visit our website at www.nqminerals.com.
Competent Persons Report
The Resource information in this announcement is based on information (third party consultants) compiled by Mr. Roger Jackson, an Executive Director of the Company, who is a 20+ year Member of the Australasian Institute of Mining and Metallurgy and a Member of Australian Institute of Company Directors. Mr. Jackson has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration results, Mineral Resources and Ore Reserves'. Mr. Jackson consents to the inclusion of the data contained in relevant resource reports used for this announcement as well as the matters, form and context in which the relevant data appears.
For further information, please contact:
NQ Minerals Arden Partners Plc IFC Advisory Ltd Brian Stockbridge Corporate Finance Financial PR Non - Executive Chairman Ruari McGirr, Ciaran Graham Herring, email@example.com Walsh Tim Metcalfe + 44 (0) 787 688 8011 (United Dan Gee-Summons +44 (0) 203 934 6630 Kingdom) +44 (0) 207 416 5900 Colin Sutherland Chief Financial Officer firstname.lastname@example.org + 1 (416) 452 2166 (North America)
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(END) Dow Jones Newswires
June 05, 2019 02:01 ET (06:01 GMT)