For you who mist this articel in SMH a few days ago.Glencore...

For you who mist this articel in SMH a few days ago.


Glencore grabs stake in YTC
Brian Robins
March 9, 2012

Glencore increases its stronghold over the base metals market. Photo: Reuters
METALS trader Glencore has snapped up a large shareholding in a nearby base metals explorer, the Chinese-backed YTC Resources, which is seeking to develop two mines in north-western NSW.

Glencore operates the CSA mine at Cobar, which is near the Hera project YTC Resources is developing, along with its Nymagee prospect.

Glencore yesterday confirmed it has bought a 6.5 per cent stake in YTC Resources, paying between 41¢ and 50¢ a share. YTC closed up 4.5¢ at 47¢ yesterday.

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YTC's two deposits are 4.5 kilometres apart and the initial development cost of the Hera project is put at $73.5 million. Cash from this project is expected to fund the cost of developing the Nymagee project.

Hera is a gold-silver and base metals project, while Nymagee is silver and base metals.

''With Hera about to go into development, people are lining up for offtake agreements,'' Hartleys analyst Mike Millikan said yesterday.

''Glencore would be looking to take the concentrate to market.''

The Hera and Nymagee prospects are on the eastern edge of the Cobar Basin which, along with the Glencore's CSA mine, hosts Toho Zinc's Endeavour mine and Canadian miner NewGold's Peak mines.

Yunnan Tin Corp has an estimated 20 per cent stake in YTC Resources and another Chinese investor, Wonderful Investments, holds a further 9 per cent.

A definite buy imho.

Read more: http://www.smh.com.au/business/glencore-grabs-stake-in-ytc-20120308-1un8h.html#ixzz1oyWA38So