Supersorb acquires Friends for $120,000, shares

By Edited announcement
Thursday, 27 July, 2006 - 13:43

Albany-based mineral explorer Supersorb Environmental NL has announced it will acquire exploration company Friends Exploration Pty Ltd for $120,000 and the issue of 54 million shares.

The proposed acquisition will give the company the rights to acquire molybdenum and tin projects in North Queensland.

In an announcement to the Stock Exchange, the company indicated the acquisition represented a step in a new direction, with the proposed sale of the company's remaining industrial mineral zeolite assets progressing.

 

 

The full announcement is pasted below

The directors of Supersorb Environmental NL are please to announce that the Company has entered into a Heads of Agreement to acquire 100% of the issued capital of Friends Exploration Pty Ltd.

Friends is an exploration company that holds rights to acquire a 100% interest in two exploration projects in North Queensland:
The Khartoum project is located approximately 95 km WSW of Mareeba in North Queensland. High grade Molybdenite was discovered in the Khartoum area in 1900 and at the time of the First World War, Khartoum was the principal molybdenum production area in Australia. Production of molybdenum came from numerous small workings recovering ore grades of 2%-5% Mo. Since that time, very little further exploration for molybdenum resources has been undertaken in the Khartoum area.

Supersorb believes that there is potential to delineate further commercial resources of high grade molybdenite within the vicinity of the old workings, and intends to commence an evaluation and exploration program on the Khartoum Project in the near future.

The main end use for molybdenum is as an alloying element in specialised steel production. The price for Molybdenum Oxide is currently around $72 per kilogram, having risen from a longer term average (from 1980 to 2000) of below $15 per kilogram.

The Jeannie River Project is located approximately 90 kilometres north of Cooktown in far north Queensland. The Jeannie River project was explored by Carpentaria Exploration Company ("CEC" - a subsidiary of the then MIM Holdings Limited) from the late 1970's through to 1986. CEC subsequently abandoned the project when the tin price dropped in the mid 1980's.

The CEC work identified a number of tin bearing structures and concluded that, on the basis of the work done at that time, the structures contained the potential for a resource of 6.7 million tonnes at a grade of 0.8% Sn. Based on the current tin price of approximately US$8,000 per tonne, the gross value of the contained metal content of a resource of that magnitude would be A$570 million.

Supersorb intends to undertake further assessment of the CEC work prior to establishing a program for further on-ground evaluation work for the Jeannie River Project.

Supersorb can acquire 100% of the issued capital of Friends through:

  • The payment of $120,000; and,
  • The issue to Friends shareholders of 54,124,788 new fully paid ordinary shares in Supersorb Environmental, which will represent 7.5% of the expanded share capital of Supersorb after the new share issue. The new shares will rank equally with existing fully paid ordinary shares. The new share issue will not require shareholder approval (in accordance with ASX Listing Rule 7.1), being less than 15% of the current issued shares.

    • The Agreement is subject to Supersorb completing final due diligence on Friends by Friday 4 August 2006.

    The proposed acquisition of Friends represents a significant step in the new corporate direction for Supersorb which has been foreshadowed in recent Company announcements.

    The proposed sale of Supersorb's remaining industrial mineral zeolite assets is progressing. Discussions are on-going with a number of prospective purchasers who have expressed an interest in acquiring the assets. Further detail on the above will be provided in the June 2006 Quarterly Report which will be released shortly.

    Companies: 
    Supersorb