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New Cobar zinc mine leads to surprise corporate double act

Western Plains App

Luke Williams

06 June 2024, 9:20 PM

New Cobar zinc mine leads to surprise corporate double actEndeavour mine. Image: australianmining.com

CSA Copper mine and the Endeavour Silver Zinc mine, 25km away from each other and both operated by different companies, are set to collaborate. 


In part of what is an ever-promising set of discoveries for new operations in the resource rich lands surrounding Cobar, mid-last month Polymetals Resources announced it would revive the Endeavor silver–zinc–lead mine near Cobar in New South Wales after taking over the reins from Toro Zinc subsidiary CBH Resources.

 


In addition to the extension and 100 per cent ownership of the Endeavor mine, Polymetals will also gain access to 1100 square kilometres of exploration tenements in the Cobar Basin. 


Polymetals executive chair Dave Sproule welcomed the completion of the sale, which has been the source of ongoing negotiations. 


350,ooomE 
400,ooornE 
6 
Polynetals 
Cobar Basin 
Regional Location Map 
45 
Tritton 
POLYMETALS 
6 550,000mN 
6 500,ooomN 
6 450,000mN 
Endeavor 
CSA 
Cobar 
New Occidental 
Peak 
McKinnons 
Tank 
Manuka 
Cobar 
Hera 
Legend 
Endeavor ntS 
Endeavor Mine 
Previous Polymetals 
Management 
Major Mines 
Major Mineral Deposit 
Downs 
Sediments 
Shelf Clastic Sediments 
Cobar Basin Silidastic 
Sediments 
Dominantly Volcanics 
Silurian Granite 
Ordovician Metasediments 
50 Kilometres 
Projection: VG.A94 Zone SS 
May Day 
Mt Boppy 
6,500.ooomN 
Mineral Hill 
L 
350,000mE 
Wagga Tank 
400,000m 
450,000mE 
6,350 
500,

Image: Polyresources 


Now Polymetals Resources (POL) has said it has reached a deal with Metals Acquisition (MAC) to enhance the value of their respective mining projects in the Cobar Basin, New South Wales, Australia. 


MAC owns and operates the CSA Copper Mine, 5km to north of Cobar, and POL’s Endeavor Silver Zinc mine is located 30km further north. 


This collaboration aims to leverage financial market synergies between the Endeavor Silver Zinc mine and the CSA Copper Mine. 


The alliance includes MAC's A$2.5m initial investment of at A$0.35 per share for a 4.31% interest in POL under Tranche 1. 


This will result in the issuance of 7,142,857 fully paid ordinary shares to MAC or its nominee. 


A further investment of A$2.5m at the same share price is outlined in Tranche 2, contingent upon several conditions. 


Also late last month, Polymetals made a ASX announcement that geotechnical drilling of the Endeavor mine, which is expected to have a 10 year life span, would commence in June 2024.