Metallica Minerals Limited (ASX:MLM) has achieved another significant milestone as it moves the Urquhart Bauxite Project in Far North Queensland into production.
The company has been granted a Mining Lease by the Queensland Department of Natural Resources and Mines.
Metallica has indicated that the department has imposed conditions on the development of Urquhart that are in line with its plans and expectations.
Included among the conditions is the requirement that operations are only conducted during the dry season (April through December inclusive).
The Urquhart Bauxite Project is fully funded, with a mining and haulage contractor appointed and ready to mobilise to site.
Metallica is now awaiting a separate approval for construction of the haul road linking the project to established port infrastructure at Hey Point, which will allow mining to commence.
Once all approvals have been received, the four-to-six week development period will commence immediately.
Well funded to advance the Urquhart Bauxite Project to production
Metallica recently received $4.5 million as the first tranche payment following the sale of its Sconi Project to Australian Mines Limited (ASX:AUZ).
Importantly, the company had cash on hand of more than $8 million as at 8 December 2017 to fund the Urquhart Bauxite Project to production.
Following the commencement of commercial production from Sconi, a further $5 million in cash or issuance of Australian Mines shares will become due.
Metallica’s shares are trading circa 7% higher intra-day, at $0.061.