Australia’s Metals X and China’s Yunnan Tin Group announced on Friday that they had signed a Heads of Agreement to form a joint venture to control the MLX’s Tasmanian tin assets. Metals X currently owns and operates the Renison and Mt Bischoff mines and Renison concentrator in Tasmania and also has long term plans to treat Renison tailings. The two mines have a combined theoretical capacity of up to 9,000 tpy of tin-in-concentrate.
Under the agreement, MLX will sell to YTG up to a 60% interest in all the assets of its wholly owned subsidiary Bluestone Mines Tasmania Pty Ltd (“BMT”) for A$60 million. The first stage being an unconditional 50% interest for A$50m followed by a conditional 10% for a further A$10m. MLX will form an unincorporated joint venture with YTG to continue to develop and advance the Tasmanian Tin Assets.
In a statement MLX Managing Director Warren Hallam said: “This major investment by YTG speaks volumes for the future potential of our Tasmanian tin assets and the tin market in general. Joining forces with the world’s leading tin miner gives MLX security and growth through access to smelters for off-take and technology to improve the performance and efficiency of its operations and the future development of its Rentails project."
“We believe this deal greatly enhances the ability for the company to crystallize far more value from these assets for our shareholders. It also strengthens the financial position of BMT, its employees, internal and external stakeholders. It provides the platform for the continued development of the Renison Project into a significant long term global tin producer during what are difficult times for the resource sector, in general, as metal prices and consumption rates respond to the global financial crisis."
The agreement is subject to Australia’s Foreign Investment Review Board, Chinese Government and MLX shareholder approvals.
