Mentioned on Heraldsun.com.au Anglo American takes stake in...

Mentioned on Heraldsun.com.au
Anglo American takes stake in Magma Metals

GLOBAL resources giant Anglo American is to acquire 10 per cent of nickel, copper and platinum-group-metals explorer Magma Metals for $8.08 million.

Magma, currently capitalised at around $41.66 million, said the funds would "primarily'' be used to develop the Thunder Bay platinum-palladium-copper project in Canada.

Anglo will purchase 13.47 million Magma shares at 60 cents, and install one non-executive director on Magma's board.

Anglo American is the world's largest platinum producer.

"This investment by one of the world's largest resource companies recognises the significant potential of Magma's Thunder Bay North project,'' the explorer said.

"Funds from the share placement will primarily be used to complete the current 24,000 metre diamond-drill program at the Thunder Bay North project and to finance follow-up drilling programs and geophysical surveys, designed to establish the scale and scope of the project.''

Latest drilling results from Thunder Bay North included 4.12 grams per tonne of platinum and palladium at 16.1 metres, and 3.55 grams per tonne at 11.65 metres.

In August this year, however, Magma announced "spectacular'' intercepts of 26.5 grams per tonne at 0.7 metres, and 8.83 grams per tonne at 35.5 metres.

"An approximate 24,000 metre diamond-drill program is in progress over a 3km strike length of the Current Lake intrusive complex in the Thunder Bay North project in Ontario,'' Magma said.

Perth-based Magma is also active near the Western Australian towns of Laverton and Kalgoorlie in the Yilgarn region, and Halls Creek in the Kimberley.