Kagara buys Maitland for $6.5m

West Perth-based miner Kagara Ltd has expanded its resource portfolio after agreeing to pay $6.5 million plus royalties to Glengarry Resources Ltd for the Maitland copper deposit in Queensland.

Kagara will also purchase the deposit's associated tenements from West Perth-based Glengarry, with the sale subject to the approval of Glengarry shareholders.

As part of the deal, Kagara will also pay a $5 per tonne royalty on ore processed in excess of one million tones.

The Maitland deposit, which is located 60 kilometres to the south-west of Kagara's Balcooma mining
operations, has a current indicated and inferred resource of 1.5 million tonnes grading 1.5% copper including a high grade molybdenum resource of 115,000 tonnes at 0.17% molybdenum and is open at depth.

Kagara, subject to regulatory approval, will develop a satellite operation at Maitland and truck ore to the Thalanga mill, which is located to the west of Charters Towers, for processing.