ASX-listed Consolidated Tin Mines Ltd. (CSD) has signed an agreement to purchase all the assets of Snow Peak Mining Pty Ltd. (SPM). In return, CSD will issue SPM shares and convertible notes, and make payments over a 12 month period of $2 million. The deal, if approved, will give SPM a 67% holding in CSD.
CSD’s major project is the Mt Garnet hard-rock tin project in northern Queensland. The key asset included in the acquisition is the Mt Garnet concentrator facility, which is being converted to treat tin ores, whilst the addition of the Surveyor-Balcooma mine, the Einasleigh and Maitland projects and the Baal Gammon Minerals Rights Agreement will significantly expand the companies’ portfolio into copper and other metals.
CSD seeks to begin production at Mt Garnet in 2015 with a view to developing a low cost, open pit operation with an eventual annual output of 5,000 tpy of tin. The company aims to develop other production opportunities after this, underlined by the acquisition and development of Snow Peak properties. An Extraordinary General Meeting will be held in December 2014 where final approval for the purchase will be sought from CSD shareholders.
