Polymetals Resources (Endeavor Mine) and Metals Acquisition Limited (CSA Mine) have formed a non-exclusive strategic alliance in an effort to extract greater value from both neighbouring mines.
Metals Acquisition Limited (MAC) will invest $2.5 million for an initial 4.31 per cent interest in Polymetals and then invest a further $2.5 million if Polymetals secures funding to restart the Endeavor Mine and processing plant.
As part of the agreement, MAC will deliver high-grade zinc ore for treatment at the Endeavor Mine and Polymetals will allow MAC to draw up to 150ML of water annually from the Endeavor Mine pipeline for a term or 4.5 years with the excess water offtake to enhance CSA’s ore treatment capacity.
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.
“The Endeavor treatment plant has excess processing capacity which may be utilised by MAC should its current CSA zinc exploration prove positive,” Mr Sproule said.
With Polymetals now being able to defer the mine’s environmental bond replacement for up to two years and its alliance with MAC, they can now look to restart financing.
Mr Sproule said Polymetals intend to commence planned Endeavor Mine refurbishment works early in the second half of 2024 with first concentrate output planned for early 2025.
