THE BOURSE WHISPERER: Plymouth Minerals (ASX: PLH) has exercised its option to acquire an 80 per cent beneficial interest in the Morille tungsten-tin project (Morille) in Spain.
Plymouth announced the deal earlier this month, under which it has negotiated to acquire up to a 100 per cent interest in the Morille project, located in the Salamanca Province in northwest Spain.
The company described the project as a brownfields exploration and development opportunity comprising five Investigation Permits (exploration licences) covering numerous historic underground and open pit tungsten and tin mines.
Location of Morille project in the Salamanca Province in northwest Spain. Source: Company announcement
Initially Plymouth will acquire an 80 per cent interest and become the project manager, while the project vendor, Aurum Mining PLC, will retain a 20 per cent free carry interest until a ‘Decision to Mine’ stage is achieved.
“This is an exciting development for Plymouth, which we feel will reward our shareholders,” Plymouth Minerals managing director Adrian Byass said in the company’s announcement to the Australian Securities Exchange.
“We are pleased to be proceeding with our partners, Aurum Mining PLC, on the exploration and advancing the Morille Project as soon as possible.”
Plymouth asserted previous production results achieved at the project indicate it produced a sought-after, high quality tungsten concentrate product until its closure in 1985 due a fall in the tungsten price.
The company aims to commence exploration activities in the near future, and has plans to explore for extensions of known mineralisation, repeats and new discoveries.