17/03/2008 - 14:54

Western Metals divests interest in Zeehan tin deposit

17/03/2008 - 14:54

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Western Metals Limited has finalised an agreement with Stellar Resources Limited for the sale its 60% interest in the Zeehan tin deposit in western Tasmania for $1.1m.

Western Metals divests interest in Zeehan tin deposit

Western Metals Limited has finalised an agreement with Stellar Resources Limited ("Stellar") for the sale its 60% interest in the Zeehan tin deposit in western Tasmania for $1.1million.

The full announcement is pasted below:

 

Western Metals Limited is pleased to announce that it has finalised an agreement with Stellar Resources Limited ("Stellar") for the sale of Western Metals 60% interest in the Zeehan tin deposit in western Tasmania.

The divestment arrangement will allow Western Metals to realise value from an asset that does not fit its strategy and allow it to focus on its core projects, whilst adding value to Stellar as an emerging tin company.
Western Metals Managing Director, Mr George Bauk, said the agreement was a win-win result for both companies.
"For Western Metals we have realised value through the sale of a non-core asset by moving Zeehan to a home with a better fit," Mr Bauk said.

Western Metals has held a 60% interest in the Queen Hill tin deposit in Zeehan, Tasmania in a JV with Gippsland Limited.
Prime Corporate Finance was appointed to manage the sale of the asset for Western Metals.

Stellar will acquire Western Metals' entire 60% share of Zeehan, for which Stellar will pay Western Metals A$300,000 and shares in Stellar worth A$878,000 for a total sale package of A$1.178 million. Western Metals will report an accounting profit of ~ A$1 million on this transaction.
Western Metals has implemented a strategy of acquiring high value exploration assets that have the potential for large discoveries that can achieve the company's growth targets.


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