Monday May 25, 2015: Shares in Brumby Resources (BMY) rose 55 per cent this morning after the company announced plans to acquire the rights to a Pilbara zinc project.
Brumby said it had agreed to buy private company Marindi Pty Ltd. Upon completion of the deal, Marindi executives and prominent mining men Ross Ashton and Joe Treacy will join the Brumby board as chairman and MD respectively.
Marindi is earning 100 per cent of the Newman Base Metal Project, which has a JORC Resource of 3Mt at 5 per cent zinc, 1.6 per cent lead and 15gpt silver.
Brumby said there was also "a potentially much larger lead-zinc-silver prospect at the Wolf Prospect".
Brumby is raising $3.75 million at 1c to fund the exploration.
Brumby chairman Geoff Jones, who will remain on the board, said the deal the deal would position the company "at the forefront of the Australian zinc industry".
"Zinc has one of the most favourable market outlooks of any commodity over the next five years," Mr Jones said. "The Newman Base Metal Project is ideally positioned to develop a very large base metal resource portfolio over the next one to two years and establish the foundation for a significant zinc producer in the medium term."
Brumby said it had agreed to buy private company Marindi Pty Ltd. Upon completion of the deal, Marindi executives and prominent mining men Ross Ashton and Joe Treacy will join the Brumby board as chairman and MD respectively.
Marindi is earning 100 per cent of the Newman Base Metal Project, which has a JORC Resource of 3Mt at 5 per cent zinc, 1.6 per cent lead and 15gpt silver.
Brumby said there was also "a potentially much larger lead-zinc-silver prospect at the Wolf Prospect".
Brumby is raising $3.75 million at 1c to fund the exploration.
Brumby chairman Geoff Jones, who will remain on the board, said the deal the deal would position the company "at the forefront of the Australian zinc industry".
"Zinc has one of the most favourable market outlooks of any commodity over the next five years," Mr Jones said. "The Newman Base Metal Project is ideally positioned to develop a very large base metal resource portfolio over the next one to two years and establish the foundation for a significant zinc producer in the medium term."