PERTH (miningweekly.com) – Emerging iron-ore-miner Centaurus Metals said on Friday that it would sell its noncore Citadel gold/copper project, in Western Australia.
Antipa Minerals, which is planning an initial public offer (IPO) and listing on the ASX early in 2011, would buy the project from Centaurus.
Centaurus would divest of the Citadel project for 6,25-million shares, at an issue price of 20c a share with a free attaching option for every two shares held. The iron-spring grinding machine chinaore miner would hold about 13,5% of the post-IPO issued capital of Antipa.
The agreement was subject to a number of conditions, including the successful listing of Antipa oncrushing and grinding of aluminium the ASX.
“We are very pleased to be able to enter into a deal on the Citadel project with Antipa, a company established by a group of well-respected senior resource industrybaryte crusher price in india executives, with a proven track record of high-quality exploration and development activity,” said Centaurus MD Darren Gordon.
He added that the proposed divestment was consistent with Centaurus’ core focus on developing its portfolio of Brazilian iron-ore assets, where it aims to produce three-million tons a year of high-grade iron-ore by the end of 2013.
“The divestment of the Citadel project will realise immediate value for Centaurus shareholders, with Centaurus becoming one of the largest shareholders in Antipa Mining.”
Gordon said that the shareholding in Antipa would give Centaurus exposure to the exploration upside of the Citadel project, as well as Antipa’s other projects, as its exploration programmes were rolled out over the coming 12 months.
The Citadel gold/copper project is located about 100 km from the Telfer gold mine. The project is prospective for high-grade gold and copper mineralisation, with previous exploration work at the Magnum prospect recording intersections of 15 m, at 14,1 g/t gold, and 8 m at 4,4 g/t gold.