Toronto-listed Adex Mining is seeking shareholder approval to transfer its interests in the Asia Pacific porphyry copper project to a new company known as Tequila Copper, which will soon begin trading on the TSE.
Starmin Mining (TSE), Adex’s joint-venture partner in the Philippine project, has already agreed to contribute its interests in the project, together with its other mining assets and some surviving liabilities, to Tequila. Starmin recently underwent a 3-for-1 share consolidation and a name change to First Dynasty Mines.
Adex and Starmin shareholders will receive special warrants of Tequila on a pro rata basis. The warrants are exercisable into common shares. The 7,000-acre Pacific Asia project will be Tequila’s principal asset. The project includes the Hinoba-an copper-gold porphyry orebody, which is estimated to contain minable reserves of 94.6 million tonnes of sulphide ore grading 0.45% copper, and 6.6 million tonnes of oxide ore grading 0.67% copper. Recent exploration by the partners has indicated that additional reserves may be present within a new zone termed the A-1.
Tequila plans to complete a financing by way of a private placement or an initial public offering. Some of the proceeds will be used to complete a drill program on the A-1 zone in an effort to outline additional reserves. Upon completion of the drilling, a feasibility study will likely be carried out to review both a solvent extraction-electrowinning (SX-EW) operation and a conventional copper sulphide processing facility.
Elsewhere, Adex plans to continue development of its diamond projects in the Northwest Territories and gold properties in Guyana
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