QMines Limited (ASX: QML) has announced the 100% acquisition of the Develin Creek Copper-Zinc Project from Zenith Minerals Limited (ASX: ZNC).
Develin Creek is located approximately 90km west of QMines flagship Mt Chalmers Copper and Gold Project, located 17km northeast of Rockhampton, Queensland.
Due to the proximity and high-grade nature of the copper and zinc resource, the acquisition is very complementary to QMines Mt Chalmers project, and bodes well for the potential future development of the combined resources.
QMines managing director, Andrew Sparke, commented, “Since listing in only May 2021, the QMines team has rapidly grown its copper resources at the Mt Chalmers project. We always believed that the Develin Creek asset was very complementary and would provide the scale required to progress the Mt Chalmers project towards sustainable copper production.”
The company has executed a term sheet to acquire a 100% interest in the Develin Creek project from Zenith Minerals Limited for total consideration of A$4.5M in cash and shares. The acquisition is a two staged transaction with the initial interest of 51% acquired for A$1.2M in cash, and A$1M in shares.
The additional interest (49%) is to be acquired for a further A$1.3M in cash and A$1M in shares within 12 months. All shares will be escrowed for six months from their date of issue. The second tranche payment may be adjusted down to A$0.975M in cash and A$0.6875M in QMines shares, if a detailed metallurgical study shows zinc concentrate grades below 50%, or that a 50% zinc concentrate grade is not commercially achievable.
Mr. Sparke continued, “We wish to thank the Zenith Board for sharing our vision of a larger, combined copper business and for their patience and assistance with the transaction. We would like to welcome Zenith and their shareholders to the register as large owners in our company. We look forward to working closely with you as we test several exciting exploration targets and prepare the company for potential future production.”
To find out more, please visit www.qmines.com.au
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