Polymetals Resources Completes Endeavor Mine Acquisition, Eyes Production in H1 2025
POLYMETALS RESOURCES LTD (POL) Share Update July 2024 Wednesday 31st
Polymetals Resources Completes Acquisition of Endeavor Mine
Polymetals Resources Ltd (ASX: POL) has successfully completed the acquisition of the Endeavor Silver, Lead, and Zinc mine, marking a significant milestone in the company's growth strategy.
Instant Summary:
- Polymetals acquires 100% ownership of the Endeavor Mine.
- The mine includes 1,100km² of tenements and a 1.2Mtpa processing plant.
- First concentrate production is targeted for H1 2025.
- One million shares issued to CBH Resources as final payment.
Acquisition Details
Polymetals Resources Ltd has finalized its acquisition of the Endeavor Silver, Lead, and Zinc mine, located 40km north of Cobar, NSW. The acquisition includes 1,100km² of tenements, a 1.2Mtpa processing plant, and significant supporting infrastructure.
The completion of the acquisition involved the transfer of 100% of the shares held by CBH Resources Limited and its subsidiary companies, Endeavor Operations Pty Ltd and Cobar Operations Pty Ltd, to Polymetals' wholly-owned subsidiary, Cobar Metals Pty Ltd. As part of the final payment for the acquisition, one million fully paid POL shares will be issued to CBH Resources.
Future Plans
With the acquisition complete, Polymetals is set to progress with surface and underground refurbishment works. The company is on track to achieve first concentrate production and sales revenue during the first half of 2025. Additionally, Polymetals is continuing its recruitment of key management personnel to support these efforts.
Aside from the physical site activities, the finalization of the Endeavor Mine plan optimization and the completion of project financing remain the only major outstanding corporate items. An updated mine plan, detailing improved modelled outcomes compared to the initial Mine Restart Study released in October 2023, will be announced shortly.
Executive Remarks
Polymetals Executive Chairman Dave Sproule expressed his satisfaction with the acquisition, stating, 'Polymetals Board and management are extremely pleased to achieve 100% ownership of the Endeavor silver, lead, and zinc mine. We can now get on with what the Company has done best for many years, namely the cost-efficient development, management, and operation of mines within Australia and particularly within the very familiar and fertile polymetallic Cobar Basin.'
Sproule also highlighted the mine's potential, noting its outstanding endowment of JORC Resources (16.3Mt @ 8% Zn, 4.5% Pb & 84g/t Ag) and compelling exploration potential likely to extend the initial 10-year mine life.
The completion of the Endeavor Mine acquisition positions Polymetals Resources Ltd for significant growth. The acquisition provides the company with a substantial asset base and the potential for increased production and revenue. The planned refurbishment works and recruitment of key personnel indicate a strong commitment to operational efficiency and success.
Investors may view this acquisition positively, as it aligns with Polymetals' strategy of cost-efficient mine development and operation. The company's focus on the Cobar Basin, a well-known polymetallic mineral province, further enhances its growth prospects.
Investor Reaction:
Analysts are likely to react favorably to the news, given the strategic importance of the Endeavor Mine and its potential to boost Polymetals' production capabilities. The issuance of one million shares as final payment may be seen as a reasonable trade-off for acquiring a high-potential asset.
However, investors will be keen to monitor the company's progress on the refurbishment works, recruitment efforts, and the finalization of the mine plan optimization and project financing.
Conclusion:
Polymetals Resources Ltd's successful acquisition of the Endeavor Mine marks a pivotal moment in the company's growth trajectory. With plans for first concentrate production in H1 2025 and a focus on operational efficiency, Polymetals is well-positioned to capitalize on this strategic acquisition. Investors should stay tuned for further updates on the mine plan and project financing, as these will be critical to the company's future success.