Metallum to sell Chilean assets, restructure board

Copper miner Metallum is selling its Chilean assets and restructuring its board, after determining that it wouldn’t be viable to restart operations at the El Roble project in the short or medium term.

In a statement today, Metallum said it had consulted with its external advisers and came to the conclusion that, in the current market, seeking to raise funds to restart mining operations at El Roble would not be successful.

It will instead focus on advancing its Teutonic project in Western Australia, while reviewing the best possible options for its Comval assets in the Philippines.

Alongside the asset sale, Metallum managing director Zeffron Reeves and non-executive director Colin Johnstone have resigned from the board, and together with the company’s chairman Winton Willesse will acquire Metallum’s subsidiary which wholly owns the Chilean assets for a 'nominal consideration'.

Atacama Holdings, the Chilean subsidiary, currently have liabilities of about $295,000.

Replacing the outgoing board members are Shannon Coates and Erlyn Dale as interim non-executive directors.

“The company wishes to ensure the transaction is the best available to shareholders; and the new board and the outgoing directors are committed to ensuring a transparent and fair disposal process,” the company said.

“To that end, the board is offering any other interested parties an opportunity to make an alternate bid for the Chilean assets.”

Meanwhile, Metallum has engaged its corporate adviser Merchant Corporate Finance to assist in a $2 million capital raising to help re-finance the company and meet its existing creditor obligations.

The raising will be undertaken through the issue of about 40 billion shares at 0.005 cents each to existing shareholders on a 47-for-one basis.

Metallum has also accepted a $400,000 convertible loan from Merchant nominees to provide interim working capital.

Metallum shares were suspended from trade on October 2, when they were trading at 0.2 cents each.

They were worth 0.1 cent each at 10:15am.