emu to revive nation's sole antimony mine

shareholders to vote in a few weeks time

deal or no deal?

looks a fair punt considering the company started the day cash backed and plans to raise near 15c pre consolidation


http://afr.com/p/business/companies/emu_to_revive_nation_sole_antimony_wTxZkYrbPOW62Co3EHGqnM

Australia's sole antimony mine is to be revived under plans by Emu Nickel, which needs to raise $60 million to buy the asset and re-start production.

The Perth-based minnow on Wednesday said it planned to acquire the Hillgrove mine near Armidale in New South Wales, which is the only antimony mine in Australia and also contains gold.

It plans to bring it back into production within 12 months.

Antimony metal is used in flame retardants, for alloying with other metals and as a catalyst in plastic manufacture.

Chinese production accounts for about 77 per cent of world supply.

The Hillgrove mine is currently owned by Straits Resources, which in August agreed to sell the operation to ANCOA, a company that Emu plans to acquire, for $40 million in cash and shares.

The mine was put on care and maintenance in 2009 due to processing problems.

"Emu plans to upgrade the plant to produce two concentrates rather than pure metal, a plan which avoids the Straits' processing issues," the explorer said in a statement.

Emu will put nine resolutions to shareholders at a meeting on March 9 to approve the acquisition of ANCOA and Hillgrove, the adoption of that company's name, and a $60 million capital raising to fund the mine's purchase and recommissioning.

"Project opportunities of the maturity of Hillgrove and at such sensible pricing, are extremely rare," Emu chairman Peter Thomas said.

Mr Thomas said he expected antimony prices would continue to rise due to supply constraints in China, namely Chinese government policies and rapidly diminishing reserves.