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Australia’s Metals X and China’s Yunnan Tin Group have announced that they had signed a Heads of Agreement to form a joint venture to control the MLX’s Tasmanian tin assets. Meanwhile, Cadillac Ventures Inc, a junior Toronto mineral developer, says it has failed to reach a final agreement with Latin American Minerals Inc on the Tendal VMS zinc, lead and copper project in Argentina and has decided to scrap talks. Australian tin exploration company Consolidated Tin Mines Limited is to undertake a placement of 10 million shares to raise A$1million.
By Kishori Krishnan Exclusive To Tin Investing News
Australia’s Metals X and China’s Yunnan Tin Group have announced that they had signed a Heads of Agreement to form a joint venture to control the MLX’s Tasmanian tin assets.
Metals X currently owns and operates the Renison and Mt Bischoff mines and Renison concentrator in Tasmania and also has long term plans to treat Renison tailings. The two mines have a combined theoretical capacity of up to 9,000 tpy of tin-in-concentrate.
Under the agreement, MLX will sell to YTG up to a 60 per cent interest in all the assets of its wholly owned subsidiary Bluestone Mines Tasmania Pty Ltd for A$60 million. The first stage being an unconditional 50 per cent interest for A$50m followed by a conditional 10 per cent for a further A$10m.
MLX will form an unincorporated joint venture with YTG to continue to develop and advance the Tasmanian Tin Assets. In a statement MLX Managing Director Warren Hallam said: “This major investment by YTG speaks volumes for the future potential of our Tasmanian tin assets and the tin market in general. Joining forces with the world’s leading tin miner gives MLX security and growth through access to smelters for off-take and technology to improve the performance and efficiency of its operations and the future development of its Rentails project.”
“We believe this deal greatly enhances the ability for the company to crystallize far more value from these assets for our shareholders. It also strengthens the financial position of the firm and provides the platform for the continued development of the Renison Project into a significant long term global tin producer during what are difficult times for the resource sector, in general, as metal prices and consumption rates respond to the global financial crisis.”
No deal
Cadillac Ventures Inc, a junior Toronto mineral developer, says it has failed to reach a final agreement with Latin American Minerals Inc on the Tendal VMS zinc, lead and copper project in Argentina and has decided to scrap talks.
“The corporation does not intend to pursue further negotiations,” Cadillac said Monday. Cadillac has two Canadian exploration projects. The New Alger project outside Cadillac, Quebec is a wholly owned, previously producing gold mine, where the company has begun a drilling program.
Meanwhile, the Burnt Hill Project is a 51 per cent owned tungsten tin project outside Fredericton. In Spain, the company is a joint venture partner with Minas de Aguas Tenidas, SAU in exploring properties surrounding the Aguas Tenidas Mine.
In trading on the TSX Venture Exchange, Cadillac shares were unchanged at 35 cents.
Merger on
Oberthur Investment Limited has entered into an agreement to acquire up to 4,819,200 ordinary shares, representing approximately 30 per cent stake in Bemban Corporation Limited (BCL) from Malaysia Smelting Corporation Berhad (MSC) for a cash consideration of up to $9 million.
Oberthur is a Seychelles-based investment holding company. MSC is an integrated producer of tin metal and tin-based products. BCL is a British Virgin Islands-based investment holding company and owns the entire issued and paid-up share capital of Kajuara Mining Corporation Pty, Ltd which in turn owns a 75 per cent equity interest in tin mining and smelting company PT Koba.
The transaction is expected to be completed by first quarter of 2011. MSC would use the proceeds from the stake sale for working capital purposes and/or to reduce short-term borrowings.
Stop ops
Seven Indonesian tin smelters have stopped production following a tougher stance by local police in clamping down on alleged illegal mining, which has resulted in a shortage of tin ore supplies, said an industry official.
The smelters, located in the tin producing region of Bangka-Belitung, belong to Bangka-Belitung Timah Sejahtera, a consortium of small-scale tin smelters, and have a combined capacity of around 2,800 metric tons a month, said Ismiyardi, the consortium’s commissioner.
To raise $1m
Australian tin exploration company Consolidated Tin Mines Limited (ASX: CSD) is to undertake a placement of 10 million shares to professional and sophisticated investors at a placement price of A$0.10, to raise A$1million.
For every share placed the company will also issue an attaching option exercisable by the payment of 20 cents each, on or before December 31, 2013. The placement will be completed in two tranches.
The placement funds will be used for ongoing drilling and metallurgy work at the Gillian Tin Project and drilling and assaying at the Windermere Tin Project. In addition the funds will be used to advance the Alluvial Tin Project at Upper Battle Creek and for further exploration and evaluation work to continue progressing the Company’s Mt Garnet Tin project, in far north Queensland.