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Matrix chases listing

PERTH-based Matrix Metals Limited will seek listing on the bourse in May in a bid to raise $8 million to develop two copper projects located in the Mount Isa and Cloncurry areas of North Queensland.

The company has substantially progressed plans to become a significant producer of cathode copper after consolidating the copper assets of Majestic Resources NL and producer Murchison United NL. Matrix aims to produce between 15,000 and 20,000 tonnes per annum within the next two to three years.

The Mt Cuthbert copper project, subject of a purchase agreement between Matrix and Murchison,

produces 5,500tpa of London Metal Exchange grade copper cathode.

Currently the project has a life expectancy of four to five years, which is expected to be significantly extended through exploration on the surrounding extensive tenement holdings.

The White Range project, subject of a purchase agreement between Matrix and Majestic, is located 100 kilometres south of Mt Cuthbert.

Matrix CEO Andrew Chapman told Business News a pre-feasibility study had identified a resource of 8.6 million tonnes grading at 1.55 per cent copper.

Similar to Mt Cuthbert, the White Range development scenario comprises a heap leach, solvent extraction and electrowinning facility and is in pre-feasibility stage.

Mr Chapman believes the projects are developing at a favourable time, “with a backdrop of a very low Australian dollar and copper prices going up”.

He said consolidating the copper assets of Murchison and Majestic into one entity enhanced the value of the separately owned operations.

“Mt Cuthbert is a low cost copper producer recognised by its ability to return profits during the recent twenty-five year low copper price slump.

“The benefits of combining these two projects creates greater cost efficiencies and economies of scale,” he said.

Mr Chapman said the improving copper price further highlighted the benefits associated with listing Matrix to generate new capital for the company enabling it to upgrade the Mt Cuthbert operation and fast track developing a new processing facility at White Range.

Following Matrix’s listing, which is underwritten by stockbroker DJ Carmichael, Majestic will be paid $5 million for its assets on a staged payment basis, while Murchison shareholders will be offered in-specie shares – to the value of $5 million – in Matrix.

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