As previously announced, the transaction is subject to a 120 day due diligence which commenced on April 8th 2008....so it is coming very soon – late July or early August.
On successful completion Western Metals will sign a formal sale agreement and pay Anglesey Mining AUD$7.6m in a combination of cash and shares. On the completion of a successful bankable feasibility study or 3 years whichever is earliest, Western Metals will make a final payment of AUD$21.5m in a combination of cash and shares. The total purchase price is AUD $29 million.
The Project has had significant modern exploration, definition and infrastructure established. The key aspects of this work include:
Activity Amount
Surface Drilling 60,400 metres Underground Drilling 10,800 metres 4.5 Metre Diameter Shaft Sunk (Morris Shaft) 300 metres Underground Exploration Development 900 metres Pilot Processing Plant 800 tonnes
Massive Sulphide Zones
The massive sulphides zones identified to date are known as the Engine, Central and Garth Daniel zones. These zones are located on or proximal to the contact between the southern shales and overlying rhyolite sequences.
The sulphide contains variable amounts of copper, lead, zinc, silver and gold ranging up to 4% Cu, 25% Zn, 10% Pb, 600 g/t Ag and 5 g/t Au in the most massive sulphides. Mineralised true widths range from narrow stringers to 20 metres.
The dominant sulphide minerals present are chalcopyrite (Cu), galena (Pb) and sphalerite (Zn). The silver and gold are found associated with the sulphides.
The Project has current planning approvals for a 1,000 tonnes per day operation, and enjoys strong community and government support.
WMT Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
