Metals X has announced the completion of a successful A$100.6 million equity capital raising and also confirmed that it intends to separate the company into two businesses in gold mining and base metals. The new base metals unit will include among its assets a 50% stake in the Renison tin mine in Tasmania, which produced 6,816 tonnes of tin-in-concentrate in 2015. Metals X and its Chinese partners (Yunnan Tin Group and L’Sea Resources) agreed earlier this year to review and update a feasibility study on the treatment of tailings at Renison, noting that “the Australian dollar tin price was approaching a level that made the development feasible and bankable.”
Metals X recently completed the acquisition of the Nifty copper mine in Western Australia from Aditya Birla Minerals. In a statement the company said that, following the acquisition, “it now believes that its base metals division can stand alone as a formidable diversified base metals company, with production from its copper and tin assets and expansion and growth assets in tin, copper and nickel.” Meanwhile its three gold mines and four process plants produce some 220,000 oz per annum, with plans to double this over the next few years.
Current CEO Peter Cook is expected to become managing director of the gold company, with the company’s other Executive Director, Warren Hallam running the base metals business. Metals X aims to convene a shareholder meeting to approve the demerger in late October/early November 2016.
