Galena Mining LTD will separate the company’s non-core polymetallic base metals exploration assets into a separate entity, Metal Range Limited, which is proposed to become self-funding, operate independently of Galena and seek listing on the ASX.
“Galena is ‘laser-focussed’ on getting Abra into construction in 2019 and the separation of Metal Range helps with that, whilst it may also create additional optionality for our shareholders to participate in a separate ASX listing and priority offer,” Managing Director, Alex Molyneux commented.
Galena has agreed to vend-in a series of exploration licences that are approximately 20 kilometres or further to the west of its flagship Abra Base Metals Project (Abra) associated with the Woodlands, Manganese Range and Quartzite Well polymetallic base metals prospects (Metal Range Prospects).
Four granted Exploration Licences will be included in Metal Range, being: E52/1413; E52/3575; E52/3630 and E52/3581, whilst all other licences, considered part of the core Abra Project will remain wholly-owned by Galena.
Galena expects to retain a material stake in Metal Range after an ASX listing, which is anticipated to be in the range of 10-20 per cent following the completion of the separation and Metal Range funding activities.
The company considers the separation of the Metal Range Prospects to have several advantages, including:
- Galena will be able to focus all its resources including its management time and funds to accelerate the development of Abra with a view to moving into construction in 2019.
- Exploration activity on the Metal Range Prospects will be able to be accelerated as a priority in a new stand-alone entity.
- Abra mineralisation is open to the north-west, south and south-east, as well as at depth, plus Galena will retain the attractive prospects of Hyperion and Genie within its tenement package so the company continues to have outstanding resource development potential around its core asset.
- The company will retain a residual interest in Metal Range and thereby continue to hold exposure to any success within the Metal Range Prospects.
- Any listing and priority offer of Metal Range may create additional optionality and value for Galena’s shareholders.
Wholly owned by Galena, the Abra Base Metals Project is a lead-silver project located in the Gascoyne region of Western Australia (between the towns of Newman and Meekatharra). The company finalised an outstanding pre-feasibility study (PFS) in September 2018 for development of a mine and processing facility with a 14-year life producing a high value, a high-grade lead-silver concentrate containing approximately 91kt of lead and 760koz of silver per year after ramp-up.
More information on the Abra Base Metals Project can be found here.