14/06/2017 - 13:28

Independence to sell copper project for $47m

14/06/2017 - 13:28

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Independence Group has announced plans to sell its Stockman copper-zinc project in Victoria for $47.2 million in cash and royalty payments, but will record a $20 million impairment on the project.

Peter Bradford says the sale represents a positive outcome for all stakeholders. Photo: Attila Csaszar

Independence Group has announced plans to sell its Stockman copper-zinc project in Victoria for $47.2 million in cash and royalty payments, but will record a $20 million impairment on the project.

Independence said it would receive $32.2 million in cash and up to $15 million in royalties from the sale of Stockman to CopperChem, the mining subsidiary of NSW-based investment company Washington H Soul Pattinson and Company.

However, based on the current value of the asset, Independence expects to record a $20 million impairment on Stockman.

“Although Independence recognises the value of the Stockman project, CopperChem is ideally positioned to continue its exploration and development, while we have retained upside exposure,” Independence managing director Peter Bradford said.

“We believe that this outcome is positive for all stakeholders.”

Treadstone Resource Partners and Herbert Smith Freehills advised Independence on the sale, while Pitt Capital Partners and McCullough Robertson advised CopperChem.

Meanwhile, Syndicated Metals announced today it had completed the sale of its 50 per cent stake in the Barbara copper project in Queensland to CopperChem for $2.3 million in cash plus a production royalty.

The acquisition will move CopperChem to whole ownership of the project.

Syndicated managing director Andrew Munckton said the company was looking forward to moving ahead with upcoming exploration work at its Monument gold project near Laverton.

“As a result of the $2.3 million cash injection stemming from this transaction, we are in a position to move ahead quickly with our gold exploration activities in WA without diluting existing shareholders,” he said.

Independence shares were 0.3 per cent higher to $3.30 each, while Syndicated shares were unchanged at 1.5 cents each, at 1:30pm.

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