Galena Mining to divest non-core assets
ASX listed base metal developer Galena Mining has taken the prudent step of separating its non-core exploration assets into a new entity, Metal Range Limited, so it can fully focus on developing the flagship Abra project in WA into construction during 2019.
The proposed new listing will incorporate 5 exploration licences located directly west of the Abra mining lease tenements that contain the early-stage Woodlands, Manganese Ridge and Quartzite Well prospects, which have all shown potential for base metal and precious metal mineralisation.
Recent drilling at the Woodlands complex has returned encouraging deep results of highly anomalous copper, lead and gold.
Better intersections include 12.4 metres grading 0.84% copper and 0.34 grams per tonne gold from 529m down-hole, which incorporated 7.4m @ 1.16% copper.
The same drill hole returned 16.8m @ 1.46% lead from 259.2m down-hole, alluding to multi-commodity nature of the Woodlands mineralisation.
Additionally, the Manganese Ridge prospect has delivered elevated copper and lead assays results from very limited drilling programs.
Best results to date are 35m @ 0.5% copper from 313m down-hole and 16m @ 1.1% lead from a shallow 8m down-hole.
Quartzite Well has also shown good thicknesses and grades of lead, zinc and silver mineralisation from historic drilling and is likely to become a key future exploration focus for Metal Range Limited.
Significant results from the prospect include of 28m @ 2.3% lead, 1.2% zinc and 32g/t silver from 121m down-hole and 6m @ 5.9% lead from 86m down-hole, which also contained 2m @ 10.3% lead.
Geophysical surveying has also confirmed the potential for copper and other base metal mineralisation within the broader tenement package to be vended to Metal Range.
Galena Managing Director Alex Molyneux said: “Galena is … focussed on getting Abra into construction in 2019 and the separation of Metal Range helps with that, whilst it may also create additional optionality for our shareholders to participate in a separate ASX listing and priority offer.”
Galena says that Metal Range will seek an independent listing on the ASX with the intention of making a priority offering to its existing shareholders for any associated raising of funds for the new company.
The company expects to retain a material stake in Metal Range post-listing, which is anticipated to be in the range of a 10-20% direct holding.
Galena will retain the single exploration license that surrounds the Abra deposit, which includes the Hyperion prospect and believes there is considerable resource development potential within the existing granted mining license at Abra.
The company will now be able to focus all of its resources, including management time and funding to accelerate the development of Abra, with a timeline of moving into a construction phase next year.
Galena will retain a core residual interest in Metal Range and that company will focus solely on the greenfields effort at those prospective exploration areas as a stand-alone self-funded, independent entity.