Metals Acquisiton and Polymetals Alliance

Polymetals
Polymetals

In This Article:

A strategic alliance to extract best value from each companies’ mines

Endeavor Silver Zinc Mine Cobar NSW Australia

Endeavor Mine
Endeavor Mine

SYDNEY, Australia, May 27, 2024 (GLOBE NEWSWIRE) -- Polymetals Resources Ltd (ASX: POL) (Polymetals or the Company) is pleased to announce that it has formed a non-exclusive strategic alliance with Metals Acquisition Limited (ASX: MAC) to advance synergies aiming to extract greater value from both the Endeavor and CSA Copper Mines, both located in the Cobar Basin, NSW Australia.

HIGHLIGHTS

  • MAC to invest up to $5.0 million @ $0.35/share in POL.

  • POL and MAC to enter into an agreement to treat high-grade zinc ore at POL’s Endeavor Silver Zinc Mine.

  • POL to provide MAC with excess water offtake to enhance CSA ore treatment capacity.

ALLIANCE OBJECTIVES

MAC owns and operates the high-grade CSA Copper Mine located 5 km to the north of Cobar NSW (Figure 1). Polymetals high-grade Endeavor Silver Zinc mine is located 30km to the north of CSA.

The alliance between MAC and POL will allow each company to exploit synergies between the neighbouring mines. The relationship aims to deliver enhanced operational and financial outcomes by increasing mine production at both projects.

Polymetals Executive Chairman Dave Sproule said:

“Polymetals has operated in the Cobar Basin for many years and is confident the alliance with MAC will generate significant benefit for all stakeholders. Both companies are managed by long term solution focussed operators which will unlock value from existing synergies and identify other opportunities as the relationship grows.

The Endeavor treatment plant has excess processing capacity which may be utilised by MAC should its current CSA zinc exploration prove positive. Polymetals has also been able to assist MAC with provision of a small portion of its water allocation (being excess to POL’s future needs) enabling the CSA mine to increase ore treatment rates into the future.

Polymetals looks forward to working with MAC and its CSA Mine operations team.

Bringing the Endeavor silver zinc mine back to production will be a great outcome for NSW and the Cobar community, creating over 200 direct jobs and injecting around $50m a year into the local community for at least another 10-years. The Endeavor mine life has potential to be increased with ongoing mine optimisation, exploration success and value adding treatment options.”

Figure 1 – Cobar Basin Mine Locations

Metals Acquisition Managing Director & CEO Mick McMullen said:

“We believe that this kind of transaction is an example of how cooperation in the Cobar Basin has the potential to extract the best value in the Basin…