Deal on four limestone mining leases
EXPLORER Metallica Minerals is selling four mining leases covering the Ootann limestone tenements and associated quarrying equipment to a private limestone and lime group for $ 500,000.
The Ootann mining leases are 180km southwest of Cairns and are held by Metallica’s 100 per cent owned subsidiary, Phoenix Lime Pty Ltd.
director Andrew Gillies ( pictured) said a $ 25,000 non- refundable deposit had been received and that payment of the remaining $ 475,000 would occur once indicative approval for the transfer of the mining titles was received.
The purchaser will also replace the environmental bond of about $ 27,000.
Mr Gillies said the Ootann limestone operation was acquired by Metallica eight years ago, primarily to supply lime to Metallica’s proposed scandium and nickel Greenvale region.
“As this project is on hold pending a joint venture or other funding source, the Ootann limestone operation is considered a non- core asset,” Mr Gillies said.
Mr Gillies said Metallica had also received indicative and non- binding expressions of interest on several of its other limestone projects near Townsville and Gladstone.