Metorex to consolidate stake in Zambian copper mine

Rapidly growing South African mid-tier miner, Metorex Limited, has clinched a deal that would increase its stake in the Chibuluma South Mine Limited on the Zambian Copperbelt.

Metorex chief executive officer Charles Needham said in a brief emailed statement on Friday that the miner would acquire the Industrial Development Corporation (IDC)’s 35 per cent interest in Chibuluma South for US $21 million.

But the deal’s consummation depends on receipt of approval from the Zambian Ministry of Mines and Minerals Development.

The purchase, certain to significantly enhance Metorex’s earnings from copper, would be settled by issuing new ordinary shares in Metorex.

“The current copper price environment provides Metorex with an attractive pay-back period in respect of the purchase consideration, Needham stated.

“This is an excellent opportunity for us to increase our stake in Chibuluma. The terms are very fair and significantly earnings enhancing to the Group.”

Metorex currently owns 65 per cent of Chibuluma South Mine Limited.

The mine has a mineral reserve of 6,142,000 tonnes grading 3.33 per cent copper. It also has an inferred resource of 1,936,000 tonnes grading 3.05 per cent copper. Chibuluma South mills 40,000 tonnes of ore per month and produces 13,000 tonnes of copper in concentrate per year.

Source: www.mineweb.net