23/08/2010 - 11:13

Altona to divest assets to Syndicated

23/08/2010 - 11:13

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West Perth-based Altona Mining has announced it will become a major shareholder in Syndicated Metals after agreeing to divest a number of exploration licenses in Mount Isa to the company.

Altona to divest assets to Syndicated

West Perth-based Altona Mining has announced it will become a major shareholder in Syndicated Metals after agreeing to divest a number of exploration licenses in Mount Isa to the company.

In a statement to the Australian Securities Exchange Altona said under the terms of the sale it will transfer ownership of its 100 per cent interest in three exploration licenses and the company's 51 per cent of an existing joint venture to Syndicated.

The total consideration receivable by Altona comprises 1.5 million shares in Syndicated, which shall be subject to escrow for a 12 month period.

Following the transaction, Altona will become a top ten shareholder in Syndicated.

"Altona is focused on reaching production at its Outokumpu Copper Project in Finland by early 2012 and developing the very large Roseby Copper Project in Queensland and the sale of non-core assets is part of that focus," the ASX statement said.

Altona Mining's managing director Alistair Cowden said gaining exposure to this quality Mount Isa explorer was a positive outcome for the Company.

"There are obvious synergies between Syndicated and our Roseby project," said Dr Cowden.

 

See full company statement below:

Emerging copper producer, Altona Mining Limited (ASX: AOH, the Company) today announced that it has divested a number of exploration licenses in the Mt Isa area to Syndicated Metals Limited (ASX: SMD, Syndicated), subject to a number of conditions.

Altona is focused on reaching production at its Outokumpu Copper Project in Finland by early 2012 and developing the very large Roseby Copper Project (Roseby) in Queensland and the sale of non-core assets is part of that focus.

Under the terms of the sale agreement with Syndicated, Altona will transfer ownership of its 100% interest in EPMs Bushy Park (14366), Marumba (14545), Malbon Vale (14362) and the Company‟s 51% share in the existing Joint Venture at Dronfield (14369).

The total consideration receivable by Altona comprises 1.5 million shares in Syndicated, which shall be subject to escrow for a 12 month period. Following this transaction, Altona will become a top ten shareholder in Syndicated.

Syndicated has a large ground holding immediately west of Roseby including a growing copper resource at Barbara.

Altona Mining's Managing Director, Dr Alistair Cowden, said gaining exposure to this quality Mount Isa explorer was a positive outcome for the Company.

"There are obvious synergies between Syndicated and our Roseby project," said Dr Cowden.

"The divestment maximises value for shareholders by allowing management to focus on bringing Outokumpu Project into production and exploiting the tremendous opportunity that the 900,000t of copper Roseby Project represents," he said.

Altona aims to increase Resources beyond 1 million tonnes contained copper and upgrade the Definitive Feasibility Study to a production target of 40,000tpa at Roseby.

Further divestments of non-core asset are expected to follow as the Company pursues these objectives. The Company divested non core Nickel assets in Finland last year to TSX.V listed Finnish explorer Nortec Minerals and now holds 10 million shares (last trade $CAN0.12) in Nortec

 

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