20/08/2009 - 12:27

Straits sells two projects to Venturex

20/08/2009 - 12:27

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Straits Resources is poised to sell two of its Pilbara base metal projects to West Leederville-based mineral exploration company, Venturex Resources in return for a substantial shareholding as part of a deal worth up to $11 million.

Straits Resources is poised to sell two of its Pilbara base metal projects to West Leederville-based mineral exploration company, Venturex Resources in return for a substantial shareholding as part of a deal worth up to $11 million.

The Whim Creek Mine and the Salt Creek and Balla Balla copper-zinc projects will add to Venturex's Liberty-Indee polymetallic deposits.

All of the operations are located within 45 kilometres of each other in the Pilbara and Venturex managing director Tim Sudgen believes the high grade iron ore deposits at Liberty-Indee will act as a "sweetner" when combined with the slightly lower grade deposits found at Whim Creek.

Dr Sudgen said he is very pleased with the acquisition, albeit poending shareholder approval.

"The whole concept is to go down the track of a centralised milling facility at Whim Creek and then all the resources are within a 25 kilometre radius," Dr Sudgen told WA Business News.

"While the market hasn't reacted the way I'd hoped, this deal potentially takes us from being an explorer to a near-term producer."

On completetion of the first share tranche, Straits will hold about a 19% stake in Venturex.

 

 

 

Full announcement from Straits Resources below:

 

As previously announced mining operations at Whim Creek have ceased. Whim Creek continues to produce copper from its existing heaps.

In anticipation of the cessation of processing operations Straits is pleased to advise that it has agreed Terms with Venturex Resources Limited (Venturex) to sell:

1. all the issued capital of Straits (Whim Creek) Pty Ltd, the beneficial owner of the Whim Creek Mine and all associated exploration tenements including the sulphide resources at Whim Creek Mons Cupri, and the Whim Creek Hotel but excluding the SX-EW plant which is subject to an option to purchase agreement with Finders Resources Limited; and

2. the Salt Creek and Balla Balla copper-zinc projects and associated tenements.

The consideration for the acquisition is:

1. 106 million fully paid Venturex shares at a deemed value of 7.5 cents per share ($8 million) on completion of the transaction, and

2. fully paid ordinary Venturex shares or cash to the equivalent value of $3 million based on a share price of 30 day VWAP preceding Venturex formally committing to a Decision to Mine .

 

 

Venturex Resources announcement below:

 

VENTUREX TO ACQUIRE WHIM CREEK AND SALT CREEK BASE METAL PROJECTS FROM STRAITS RESOURCES

HIGHLIGHTS:

Consolidation of Whim Creek, Salt Creek and Liberty-Indee polymetallic deposits, Pilbara Region, Western Australia

JORC Cu-Pb-Zn-Ag-Au sulphide resources of 11 million tonnes @ 1.45% Cu eq*

JORC Cu-Pb-Zn-Ag-Au reserves (open pit and underground) of 3.9 million tonnes @ 2.25% Cu eq*

Exploration to target multiple VMS**-associated copper-zinc-lead-goldsilver prospects while maintaining aggressive program at the high grade Liberty-Indee Project

Scoping study to evaluate multiple open pits and central sulphide treatment plant

 

Venturex Resources Limited (Venturex) is pleased to advise that it has agreed Terms with Straits Resources Limited (Straits) to acquire:

- all the issued capital of Straits (Whim Creek) Pty Ltd, the beneficial owner of the Whim Creek Mine and all associated exploration tenements including the sulphide resources at Whim Creek Mons Cupri, and the Whim Creek Hotel but excluding the SX-EW plant which is subject to an option to purchase agreement with Finders Resources Limited;

and

- the Salt Creek and Balla Balla copper-zinc projects and associated tenements.

The consideration for the acquisition is:

- 106 million fully paid Venturex shares at a deemed value of 7.5 cents per share ($8 million) on completion of the transaction, and

- fully paid ordinary Venturex shares or cash to the equivalent value of $3 million based on a share price of 30 day VWAP*** preceding Venturex formally committing to a "Decision to Mine".

On completion of the first share tranche, Straits will hold approximately 19% of Venturex's issued capital.

Venturex will seek Shareholder approval for the acquisition.

The acquisition is a significant step in the consolidation of VMS Base Metal Deposits in the Western Pilbara. Venturex intends to advance a production concept centred on potential high grade ore production from the Liberty-Indee Project combined with open pit copper (zinc, silver, gold) production from Whim Creek, Mons Cupri, Salt Creek and Balla Balla. The anticipated milling rate is 500,000 tonnes per year with a targeted copper equivalent
production rate of 10,000 tonnes per year with significant precious metal credits.

* Copper equivalent metal %; 19 Aug 2009 Cu, Pb, Zn, Ag, Ag, Au
** Volcanogenic Massive Sulphide
*** Volume Weighted Average Price

 

 

 

 

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