Metallica Minerals to Merge with Melior Resources

THE BOURSE WHISPERER: Metallica Minerals (ASX: MLM) announced it has entered into a binding Arrangement Agreement (AA) to merge with TSX_V-listed Melior Resources.

Metallica Minerals said the merger would be via a Plan of Arrangement to be approved by the court in British Columbia, Canada.

The company intimated the merger will create a diversified Queensland mining company with near term production and a strong pipeline of future growth opportunities, boasting a strong portfolio of assets located in Queensland, which has a stable and well-established regulatory regime.

The merging entities believe their complementary mineral sands and bauxite projects, together with project proximity and combined management expertise, provide the opportunity for both sets of shareholders.

The merger is to be implemented by way of a Canadian Plan of Arrangement, whereby Metallica has agreed to acquire all issued capital of Melior by the issue of 20 new Metallica shares for every 1 Melior share held.

Announcing the deal, Metallica said the merged entity will have an enhanced capital markets profile, a strengthened investor base and a strong pipeline of growth assets, positioning it to become a strong new ASX-listed mining company well situated to take advantage of the favourable outlook for mineral sands and bauxite.

“This is a transformational deal for both companies,” Metallica Minerals chairman Peter Turnbull said in the company’s announcement to the Australian Securities Exchange.

“Melior’s Goondicum ilmenite project shares similar attributes to Urquhart Bauxite in that it is fully funded and will be brought into production relatively quickly for a modest capital outlay and will provide a valuable source of near-term cash flow.

“We look forward to combining the respective skills of the two companies to successfully develop those projects and pursue further growth opportunities to build a significant, profitable mining house generating excellent returns for shareholders.”





Metallica Minerals Makes Loan With Intent to Purchase

THE BOURSE WHISPERER: Metallica Minerals (ASX: MLM) has entred a loan agreement with South West Pacific Bauxite (HK) Ltd (SWPB), 75 per cent owner of the advanced Wagina bauxite project in the Solomon Islands.

Metallica Minerals is lending SWPB $120,000, in exchange for which Metallica has been granted an option to carry out exclusive due diligence on Wagina with a view to ultimately completing a transaction involving the project.

Metallica is also progressing its Urquhart bauxite project on Queensland’s Cape York Peninsula towards production.

The company explained it has been canvassing growth options to enable it to increase its production profile towards the previously stated target of five to seven million tonnes per annum of bauxite, over three to five years.

Metallica said its initial assessment of Wagina suggests the project meets its criteria as an advanced long-life, low-cost asset that has the potential to deliver long term value for shareholders.

“After an extensive and disciplined search in Australia and overseas, we are excited to have identified the Wagina bauxite project as an asset that is potentially the right fit for the company,” Metallica Metals managing director Simon Slesarewich said in the company’s announcement to the Australian Securities Exchange.

“This project has the ability to significantly extend our current Reserve life and lift the production profile beyond what Urquhart will deliver when it comes online.

“Similar to Urquhart, Wagina has the potential to be developed at a relatively low capital cost and in a manner that could deliver outstanding returns.

“We have been selective with growth opportunities and we intend to be thorough in our due diligence on Wagina as the Solomon Islands is a new jurisdiction for the company.

“We look forward to commencing this process and expect to announce the results later this year.”