THE BOURSE WHISPERER: Consolidated Tin Mines (ASX: CSD) announce that Snow Peak Mining (SPM) has completed the acquisition of the Kagara Central Region project at Mt Garnet, near Cairns in northern Queensland.
Consolidated Tin’s excitement regarding the acquisitions stems from the fact it holds a holds a 10 per cent interest in the share capital of SPM on a ‘free carry’ basis.
The familiarity extends with SPM is a subsidiary of Hong Kong-based investment group Snow Peak International Investment, which is Consolidated Tin’s major shareholder.
Consolidated tin described the Kagara project as a highly prospective and proven package of copper and base metal assets.
The project also contains an existing operational concentrator with a one million tonne per annum-capacity.
The concentrator currently has both copper and poly metallic circuits, with each circuit having the capacity to process about 500,000 tonnes per annum.
Breakdown of CSD JORC resources. Source: Company announcement
Adding to Consolidtaed tin’s excitement is the Kagara project’s proximity to its Mt Garnet tin project.
Needless to say the company views the acquisition of the Kagara project by its major shareholder as being of significant strategic value and importance.
The operating concentrator acquired by SPM is located just nine kilometres by sealed road, on the Kennedy Highway from Consolidated Tin’s Gillian tin deposit, which has a near-surface open pit mineable JORC Resource of three million tonnes at 0.78 per cent tin.
“This deal is a major step forward for Consolidated Tin,” Consolidated Tin Mines managing director Ralph De Lacey said in the company’s announcement to the Australian Securities Exchange.
“The acquisition of an operating processing plant by our major shareholder provides us with the opportunity for a clear path to production for our Mt Garnet tin project.”
It is proposed that CSD will manage and operate the Kagara project on a reimbursable basis on behalf of SPM.