Altona Mining has commenced discussions with Xstrata over the price of a 51 per cent interest in the Roseby copper project near Mt Isa in Queensland, after the international mining giant exercised an option to purchase the stake.
Perth-based Altona said today a formal process had kicked off to reach agreement on a sale price for Roseby, which includes the Little Eva copper development, which has a potential production profile of 39,000 tonnes of copper and 17,000 ounces of gold per year.
A feasibility study released earlier this year put a $320 million price tag on Little Eva, including $181 million in plant an infrastructure.
The wider Roseby area contains 1.26 million tonnes of copper and 384,000 ounces of gold, Altona said.
“The decision by Xstrata demonstrates the attractiveness of Roseby, and in particular, of Little Eva,” Altona managing director Alistair Cowden.
“We will now enter formal discussions with Xstrata to ensure the value of this project is fully recognised.
“In parallel, we will continue to progress all options for financing and developing the project.”
At 9:45AM WST, Altona stocks were up 23 per cent, trading at 29.5 cents.