Krucible Minerals receives $12m offer for phosphate tenements

THE BOURSE WHISPERER: Krucible Minerals (ASX: KRB) has accepted a non-binding offer from Daton Group Australia (ASX: DTG), a fertilizer manufacturer with activities in Queensland and a new plant being built in Brisbane, to buy Krucible’s phosphate bearing tenements for $12 million.

The proposal relates to all 13 of Krucible’s phosphate bearing tenements, including the Korella deposit and mining lease.

 

The effect of the deal on Krucible‘s tenement portfolio with those
the subject of the Proposal shaded and in red. Source: Company
announcement

 

Krucible owns more than 20 tenements consisting of exploration applications, exploration permits and a mining lease holding a JORC-inferred rock phosphate resource at Korella, which is adjacent to the existing Phosphate Hill mine owned and operated by Incitec Pivot (ASX: IPL).

Krucible explained Daton’s actions to be influenced by its interest in manufacturing advance value-added fertilisers raising the need for it to shore up a long-term stable supply of preferably locally-mined phosphate of appropriate grade.

Daton considers Krucible’s Korella phosphate deposit suitable as it is the only high grade Direct Shipping Ore phosphate resource in Australia adjacent to existing infrastructure, near to surface and ready to mine.

Krucible said it is excited about the deal, saying it introduces the much anticipated value of its phosphate activities to the company’s balance sheet.