HSK heemskirk consolidated limited

News: Heemskirk Consolidated to joint venture Canadian silica project

  1. Heemskirk Consolidated (ASX:HSK) should firm in trade after receiving an incomplete, conditional and non-binding proposal to form a joint venture to develop its Moberly Silica Operations in Canada.

    Heemskirk is now assisting the party with due diligence, and has agreed to a period of exclusivity that will expire on 2nd October 2014. 

    At this stage HSK is not in a position to identify the party, but has noted that it is a significant investor in the mining industry.

    Moberly has a capital cost of C$26 million, NPV of C$65 million and payback of about three years.

    It currently produces a frac sand product, which is a key element required for hydraulic fracture stimulation of oil and gas wells.

    Heemskirk is capitalised at around $18 million, holds $12.9 million in cash, along with a $4.2 investment in a Canadian tungsten company.

     

 
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Currently unlisted public company.

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