Blackstone Minerals Takes Slice of Corazon Mining Pie
THE BOURSE WHISPERER: Blackstone Minerals (ASX: BSX) has made a strategic investment in Corazon Mining (ASX: CZN), by way of an initial investment of approx. $2 million that will earn Blackstone 14.32 per cent interest in the common equity of Corazon.
Blackstone’s attraction to Corazon it that company’s interests in The Lynn Lake project a suite of nickel-copper-cobalt assets in Manitoba, Canada.
The Lynn Lake project has historic mining and a current mineral resource of 168,000 tonnes nickel, 81700 tonnes copper and 7900 tonnes cobalt.
Blackstone and Corazon have also entered a Memorandum of Understanding that will see collaboration on the production of upstream and downstream nickel and cobalt concentrates and chemical products, potential offtake and/or Joint Ventures to meet demand from the growing electric vehicle battery industry.
Part of the funds received from Blackstone under the transaction will be used by Corazon to test electro-magnetic (EM) targets identified at the Fraser Lake Complex, which is underexplored and has existing nickel-copper sulphide drilling intersections.
“Blackstone’s recent Ta Khoa Nickel Project Pre-feasibility study demonstrated the economic value and importance of securing upstream supply for its vertically integrated business,” Blackstone Minerals managing director Scott Williamson said in the company’s ASX announcement.
“The Lynn Lake project boasts a meaningful nickel-copper-cobalt resource that the company believes has potential for a significant valuation uplift based on integration with the Ta Khoa Refinery.
“We are also very excited by the exploration potential at the Fraser Lake Complex and look forward to collaborating with the Corazon management team to progress mine planning and development activities.”
Corazon is also offering eligible shareholders the opportunity to acquire new shares at three cents per share through a non-renounceable pro-rata rights issue to raise approximately $10.7 million.
Major shareholder Delphi Unternehmensberatung Aktiengesellschaf has indicated it intends to support the offer and to take up its entitlements.
“The Corazon share registry has evolved significantly over recent months, with nickel focused groups like Delphi and Blackstone seeking to cornerstone the company,” Corazon Mining chairman Terry Streeter told the market.
“This provides the foundations of support required to accelerate exploration and project studies on the potential re-development of the Lynn Lake nickel sulphide project.
“We are also pleased to offer Corazon shareholders the opportunity to support the advancement of our nickel assets via the Entitlement Offer, at a time of strong nickel prices and increased demand for product from the emerging rechargeable battery sector.”
TO READ BOTH COMPANY ANNOUNCEMENTS: CLICK HERE OR CLICK HERE