Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Australia’s Metals X is looking to auction its entire copper asset portfolio including of the Nifty Copper Operation, Maroochydore Copper Project and the Paterson Exploration Project, according to an Australian Securities Exchange (ASX) release on July 2.


Last month a copper assets strategic review was published by Metals X to the ASX, announcing a $32mn farm-in agreement with Independence Group over the Paterson exploration project and the finalization of a scoping study for the expansion of a resourceful open-pit mining facility owned by Nifty Copper Operation.


According to the company’s report, a call on a feasibility study and proper funding structure for restarting open-pit mining and associated holding costs must be taken in July. The estimated cost is $20mn.


After discussions on the repayment of the $35mn loan to their subsidiary, Bluestone Mines Tasmania, the company said matters with shareholder APAC Resources Strategic Holdings has necessitated the removal of three independent directors and the re-appointment of two additional APAC nominees as the company was unable to take forward Nifty funding proposals to restart the project. 


This has also led to the suspension of talks with the financier on debt repayment rescheduling.


Subsequently, the Metal’s X board concluded that selling its copper assets is the most advantageous course of action for the company.  A general meeting will be held by the company’s board before August 24 regarding this.





Leave a Reply

Your email address will not be published.