Western Metals acquires $7.6m UK copper-zinc project

Western Metals Ltd has signed a Term Sheet to acquire 100% of the advanced Parys Mountain copper-zinc project on the island of Anglesey in North Wales from Anglesey Mining plc, a UK based mining company listed on the London Stock Exchange.

The transaction is subject to a maximum 120 day due diligence and on successful completion Western Metals will sign a formal sale agreement and pay Anglesey Mining AUD$7.6m in a combination of cash and shares.

On the completion of a successful bankable feasibility study or 3 years whichever is earliest, Western Metals will make a final payment of AUD$21.5m in a combination of cash and shares.

The proposed Parys Mountain acquisition reflects the Company's stated objective of securing an advanced exploration and development opportunity with early cash flow potential.

The Parys Mountain region has been one of Britain's biggest producers of copper, reportedly yielding in excess of 300,000 tonnes of metal before mining ceased in the early 20th Century.

The Project has had significant modern exploration, definition and infrastructure established.

Western Metals intends to fast-track work programmes including drilling to establish JORC compliant resources and concurrently proceed with a formal feasibility study.

Current project schedules estimate completion within 2 years at a cost of AUD$12 - $15m.

Mr Bauk said Western Metals' management team possessed the extensive project development and operating expertise needed to quickly advance the Parys Mountain Project whilst also maintaining an aggressive exploration strategy in the Company's other projects in Tanzania, Queensland and the Americas.