Following a revised agreement with CBH Resources, Polymetals is now a step closer to bringing the Endeavor Mine back into production.
Polymetals announced yesterday that a revised Endeavor Silver, Zinc and Lead Mine acquisition agreements and ancillary arrangements had been executed and agreed with CBH Resources, a subsidiary of Toho Zinc Co.
Under the original Endeavor share sale agreement, Polymetals was not entitled to acquire any of the three CBH subsidiaries that collectively own the Endeavor project until it had procured the release and replacement of the Endeavor mine rehabilitation bond.
The new arrangements provide Polymetals with an additional two years to replace the approximately $28 million bond.
Polymetals executive chairman Dave Sproule said the new agreement was a major achievement for the company.
“The Bond exchange has been a challenging hurdle to overcome in what has been a depressed market over the past 12 months.
“Bringing Endeavor 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 economy for at least another 10 years,” Mr Sproule said.
