Finders is an emerging low cost copper cathode producer, developing a high grade 25,000 tpa copper mine on Wetar Island in Indonesia, plus a highly prospective, advanced gold-silver exploration project in Sumatra.
Finders Resources to acquire copper cathode plant, adds to project certainty
Development of the Wetar Copper Project owned 92 per cent by Finders Resources (ASX/AIM: FND) just got a whole lot closer as it entered into a Heads of Agreement (and took an option) to acquire the Whim Creek SX‐EW plant and equipment owned by Straits Resources Ltd (ASX: SRL). Investors cheered the deal sending Finders shares over 5% higher.
It is a significant step for the development of the Wetar Copper Project, as Finders can incorporate the Whim Creek SX‐EW Plant's capacity of 18,000 tonnes copper cathode per year plus the existing 2,000 tonnes per year demonstration plant as the basis for the completion of the remainder of the Definitive Feasibility Study.
As consideration for the plant, Finders will pay Straits A$5.0 million, payable in Finders fully paid ordinary shares on date of option exercise to purchase the plant. Straits will also be issued 724,638 fully paid Finders ordinary shares as the option fee for the Agreement.
Rob Thomson, Finders Director of Development said the planned acquisition of the SX‐EW plant is a major milestone in the development of the Wetar Copper Project and adds robustness and greater certainty to the project economics.
A proven operational SX‐EW plant will reduce much of the capital cost uncertainty and lead time uncertainty associated with building a new plant and provide faster cash flow upside for Finders shareholders. Enabling the Company to better meet its target of achieving commercial production of 20‐25,000 tonnes per year cathode by 2010.
Depending on final due dilligence, Finders the right to purchase the SX‐EW Plant and associated equipment at any time during the period 1 October 2009 to 31 December 2009.
