MMG Sells Avebury Nickel Mine to QCG Resources

Mining Weekly reported that MMG Ltd. (HKEX:1208) has signed a sales agreement under which it will sell its Tasmania-based Avebury nickel mine to QCG Resources for AU$40 million.

As quoted in the market news:

The Avebury mine has been on care and maintenance since February 2009, and MMG initially launched an expression of interest in the asset in 2011. The project is capable of producing some 7 000 t/y of nickel concentrate and is the subject of a supply agreement with a Chinese nickel refining company for all the nickel it can ship.

Under the terms of the QCG offer, the unlisted junior would provide a A$1.75-million deposit, payable within 15 business days of signing, A further A$33.25-million would be payable on closing the transaction, while A$2.5-million would be payable on production of the first 10 000 t of nickel in concentrate.

A further milestone payment of A$2.5-million was payable on production of the second 10 000 t of nickel in concentrate.

Click here to read the full Mining Weekly report.