News: Metallica Minerals bags $500,000 from sale of non-core assets

Metallica Minerals (ASX:MLM) has executed a sales agreement to sell four mining leases in Queensland to a private limestone and lime group for $500,000.

The sale covers the Ootann limestone tenements and associated quarrying equipment located about 180 kilometres southwest of Cairns.

A $25,000 non-refundable deposit has been received and completion of the Sales Agreement and payment of the remaining $475,000 will occur once indicative approval for the transfer of the mining titles is received.

The purchaser will also replace the environmental bond of approximately $27,000.

Metallica acquired the Ootann limestone operation about 8 years ago primarily to supply lime to the proposed SCONI project.

As this project is on hold pending a joint venture or other funding source, the Ootann limestone operation is considered a non-core asset.

The company has also received indicative and non-binding expressions of interest on several of its other limestone projects near Townsville and Gladstone which are also considered non-core mineral assets.

Last month, Metallica and its joint venture partner Ozore Resources lodged the Mining Lease Application for the Urquhart Bauxite Project in Queensland.

A major portion of the 7.5 million tonne Inferred Resource averaging 51% total aluminium oxide (Al2O3) and 16.3% total silicon oxide (SiO2) is suitable for direct shipping ore export.

This allows development of a bauxite mine-trucking-barging and transhipment operation with lower capital and lower operating costs.