POL - Polymetals Resources secures $5 million investment from Metals Acquisition for Endeavor Mine
(NewsDirect)
Polymetals Resources Ltd (ASX: POL) managing director Dave Sproulejoins Proactive’s Jonathan Jackson to discuss a non-exclusivestrategic alliance with Metals Acquisition Ltd (ASX: MAC). Thispartnership aims to enhance value extraction from the Endeavor Mineand CSA Copper Mine, in the Cobar Basin, NSW, Australia. As part ofthis alliance, MAC will invest up to $5 million in Polymetals at $0.35per share. The two companies will enter into an agreement to treathigh-grade zinc ore from MAC’s CSA mine at Polymetals' EndeavorSilver-Zinc Mine. Additionally, Polymetals will provide MAC withexcess water offtake, which will help increase the ore treatmentcapacity at the CSA mine. The strategic alliance is designed toexploit operational synergies between these neighbouring mines, withthe goal of enhancing production and financial outcomes. Sproule,expressed confidence in the partnership, highlighting the benefits forall stakeholders. He noted that Polymetals had operated in the CobarBasin for many years and that the collaboration with MAC was expectedto unlock significant value through existing synergies and otheropportunities as the relationship develops. He emphasised thatbringing the Endeavor Mine back into production would be a positiveoutcome for NSW and the Cobar community, creating more than 200 directjobs and injecting around $50 million a year into the local economyfor at least the next 10 years. He also mentioned the potential toextend the mine's life through ongoing optimisation, explorationsuccess, and value-adding treatment options. With the ability to deferthe environmental bond replacement for up to two years and taking fullownership of the Endeavor Silver-Zinc Mine operating assets,Polymetals is now positioned to complete the optimisation and restartfinancing for the mine. The company plans to commence refurbishmentworks in early H2 2024, with the first concentrate output expectedduring H1 2025.
ContactDetails
Proactive Investors
JonathanJackson
+61 413 713 744
jonathan@proactiveinvestors.com
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