12/10/2015 - 14:07

General Mining gets independent tick for Mt Cattlin

12/10/2015 - 14:07

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General Mining Corporation has confirmed the viability of earning a 50 per cent stake in Galaxy Resources’ Mt Cattlin tantalum project, after an independent review found it would cost $14.7 million to bring the project back into operation.

The Mt Cattlin tantalum project near Ravensthorpe in WA.

General Mining Corporation has confirmed the viability of earning a 50 per cent stake in Galaxy Resources’ Mt Cattlin tantalum project, after an independent review found it would cost $14.7 million to bring the project back into operation.

A review undertaken by Entech Mining Consultants found the Mt Cattlin project, located near Ravensthorpe, found it could produce about 111,500 tonnes of spodumene per annum over an initial 17-year mine life, with revenue generated over that period expected to be about $1.16 billion.

General Mining is earning a 50 per cent stake on the Mt Cattlin project by investing an initial $7 million to bring the project back into production, as well as three annual instalments to bring its total investment to $25 million.

Reviewing General Mining’s financial model, Entech supported the company’s intention to restart production at Mt Cattlin by March next year.

“Mt Cattlin represents an exceptional opportunity for General Mining to enter the lithium market at a low capital cost, and at a time of increasingly robust global demand for the commodity,” General Mining director (and former Galaxy managing director) Michael Fotios said.

“With General Mining benefitting from about $130 million in historic sunk capital, which shortens its lead time to production, and a much improved commodity price and exchange rate environment, the company is well-placed to be the first ASX-listed miner to deliver spodumene concentrate to the global market in early 2016.”

General Mining shares were 4 per cent higher to 13 cents each, while Galaxy shares were 2.2 per cent higher to 4.5 cents each at the close of trade.

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