The potential sale will include the company’s Nifty, Maroochydore and Paterson exploration projects in Western Australia
Nifty copper mine is located in Western Australia. (Credit: Łukasz Klepaczewski from Pixabay)
Minerals and metals exploration and development firm Metals X is considering selling its entire Western Australian copper portfolio.
The sale would also include the company’s Nifty, Maroochydore and Paterson exploration projects.
The decision follows the completion of Metals X’s strategic review of the copper assets that outlined a A$32m ($22.3m) farm-in agreement with metals miner Independence Group (IGO) for the Paterson Exploration Project and completion of an economically positive scoping study.
Metals X seeks to restart operations at Nifty open pit mine
The review also outlined the development of a long-life open pit mine at the 100% owned Nifty Copper Operation.
In November last year, Metals X decided to suspend mining activities at Nifty mine as the mine continued to perform below expectations.
Considering the repayment of $35m to its subsidiary company Bluestone Mines Tasmania and changes to the company board, Metals X has decided to divest its copper assets.
In a p press statement, Metals X said: “In seeking a sale of the Copper Assets, the Company will endeavour to leverage the significant value that has been added through completion of the Scoping Study and execution of the Farm-in Agreement.
“Since the release of the Update, interested parties, some of which have already conducted initial due diligence on the Copper Assets, have expressed interest in full ownership and will now be invited to submit offers.”
In June 2020, Metals X signed a binding farm-in and joint venture (JV) term sheet with IGO over its Paterson exploration project.
The tenement area comprises an area of 2,394km2 but does not include Metals X’s Nifty or Maroochydore copper projects.
IGO agreed to fund the exploration activities at Paterson for over 6.5 years, to earn a 70% interest in Paterson exploration project through the JV.