02/07/2020 - 15:43

Metals X to sell copper projects

02/07/2020 - 15:43

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Metals X is planning to sell its entire copper assets portfolio, including its Nifty operation in Western Australia, following issues with a major shareholder.

Metals X to sell copper projects
Metals X says it is unable to secure debt financing to restart its Nifty copper operation. Photo: Metals X

Metals X is planning to sell its entire copper assets portfolio, including its Nifty operation in Western Australia, following issues with a major shareholder.

The company said it was unable to secure funding required to restart the 2.8 million tonne per annum Nifty operation, which was placed into care and maintenance in November, after Hong Kong-based APAC Resources sought the removal of three Metals X directors in June.

Metals X said it had received notices from APAC requesting the removal of Patrick O'Connor, Brett Lambert and Tony Polglase.

The notices had a material impact on the board's ability to progress Nifty funding proposals, Metals X said, which led to suspension of discussions with the company’s financier on debt repayment rescheduling.

“These circumstances have led the board to conclude that divestment of the copper assets is the most appropriate course of action to ensure the financial integrity of the company and realise value for shareholders,” Metals X said.

“In seeking a sale of the copper assets, the company will endeavour to leverage the significant value that has been added through completion of the scoping study and execution of the farm-in agreement.”

Metals X completed a strategic review of its copper assets last month, which outlined the $32 million farm-in agreement with IGO for a 70 per cent interest in the Paterson exploration project, as well as completion of a scoping study for the development of a long-life open pit mine at the Nifty operation.

The company's other copper asset is the Maroochydore project, located in the East Pilbara.

Any proposed sale remains subject to shareholder approval, which Metals X will seek at an extraordinary general meeting held by August 24.

Shares in Metals X closed up 9.6 per cent to trade at 9.1 cents.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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