The companies will also have to enter into a water offtake agreement, as well as a tolling agreement for the treatment of zinc ore delivered to Polymetals by MAC. In addition, MAC will have to secure third-party consent for its plans.
Mick McMullen, CEO of MAC, believes the transaction could unlock value in the Cobar Basin.
“As recently announced, the CSA Copper mine appears to host high grade zinc mineralisation near surface and adjacent to existing development. Subject to exploration success, modifying factors and some permitting, we think that having the option to treat this material at Endeavor can potentially create significant value for our shareholders,” he said.
The company’s 2024 copper guidance is set at 38,000 to 43,000 tonnes. It also completed its Australian initial public offering during the first quarter, raising AU$325 million before costs.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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