28/06/2016 - 14:06

MinRes to buy Wodgina assets

28/06/2016 - 14:06

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Mineral Resources was coy about its plans after today announcing it has agreed to buy mining tenements, including lithium deposits, and infrastructure at the Wodgina tantalum mine, which is owned by private group Global Advanced Metals.

MinRes to buy Wodgina assets
Mineral Resources managing director Christopher Ellison.

Mineral Resources was coy about its plans after today announcing it has agreed to buy mining tenements, including lithium deposits, and infrastructure at the Wodgina tantalum mine, which is owned by private group Global Advanced Metals.

In a brief statement, Christopher Ellison-led MinRes said it had entered into an agreement with GAM for the purchase of Wogina mine assets, including tenements and all associated infrastructure assets, as well as rights and interests in the mine’s mineral deposits other than tantalum, which will be retained by GAM.

The infrastructure assets include a 13-megawatt gas-fired power station, a 387-bed camp, and a mineral processing plant.

The value of the acquisition was not disclosed.

GAM is chaired by MinRes director James McClements, while Kelvin Flynn sits on the board of both companies as a director.

Mr McClements is a partner of private equity group Resource Capital Funds, while Mr Flynn is managing director of Sirona Capital.

GAM has an existing agreement with Atlas Iron to allow iron ore mined by the company to be processed at GAM’s processing facilities at Wodgina.

MinRes was unable to confirm today if that agreement would continue.

Wodgina was mothballed in 2012 by GAM due to falling tantalum prices.

The Wodgina purchase comes after MinRes bought into Perth Basin gas producer Empire Oil & Gas, and adds to its interests in iron ore, lithium, manganese and contracting.

MinRes is also part-owner of the Mt Marion lithium mine near Kalgoorlie.

MinRes shares were 2.8 per cent lower to $8.20 each at the close of trade.

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