Metminco (MNC), incorporated in Australia, is an ASX and AIM listed mining exploration company. The Company, which holds a 100% interest in a broad portfolio of exploration projects located in the well constrained metallogenic belts of Chile and Peru, is focused mainly on copper, but has significant exposure to molybdenum, gold and zinc. Projects range from early stage exploration, through advanced exploration, to pre-feasibility – with three projects having JORC compliant mineral resources. Metminco’s premier project is the Los Calatos copper-molybdenum porphyry deposit located in southern Peru which is near, and has a similar geological setting, to three large existing copper-molybdenum porphyry mines. The Company’s other projects, all of which are located in Chile, include Mollacas (a copper leach project approaching feasibility), Vallecillo (a potential Au-Zn operation approaching pre-feasibility) and three early stage, high potential, exploration projects, namely Vallecillo (Cu-Au), Camaron (Au-Cu) and La Piedra (Cu-Au-Mo). All four Chilean projects are, or have been, the subject of an extensive exploration program that was initiated in June 2011, which is scheduled for completion by the end of February 2012.
Australia's Metminco to join AIM after acquiring a controlling stake in Hampton Mining
Metminco (ASX: MNC) has announced its intention to list on London’s AIM market, after it exercised its option to acquire a controlling interest in un-listed Hampton Mining, whose main asset is the Los Calatos copper-molybdenum porphyry deposit in southern Peru. The company has simultaneously undertaken a capital raising in support of the UK listing and the acquisition.
Metminco has submitted an application to the AIM market, operated by the London Stock Exchange, for the company’s shares to be admitted to trading. It is expected that admission to the AIM market will be granted on 1 April 2010. In the meantime, Metminco has requested a voluntary suspension of its shares on the Australian Securities Exchange (ASX) until 1 April 2010 whilst the associated capital raising is completed.
To coincide with its admission to the AIM market, it has appointed UK based corporate executive Tim Read and Francisco Vergara Irarrazava, a senior partner of a law firm in Santiago, to the company’s board of directors.
Hampton's projects are situated in Chile and Peru and are mainly focused on copper, although they also have significant exposure to gold, molybdenum, zinc, silver and lead, Metminco said. The projects range from mine pre-feasibility, through advanced exploration to grassroots exploration.
Hampton’s primary project is the Los Calatos copper-molybdenum porphyry deposit in Peru, in an existing mining region and near established service infrastructure. At Los Calatos, Hampton has estimated an initial JORC compliant resource of 262 million tonnes at a 0.2% copper cut-off grade, consisting of Indicated Mineral Resources of 69.2 million tonnes at 0.44% copper and 510ppm molybdenum and Inferred Mineral Resources of 192.4 million tonnes at 0.42% copper and 382ppm molybdenum. Hampton is currently undertaking a 11 hole, 10,000 metres drilling program at Los Calatos.
Hampton’s other advanced projects, the Mollacas copper project and the Vallecillo gold-zinc project, are both located north central Chile. At the Mollacas project, final leach testwork is underway, as a precursor to a feasibility study.
Metminco initially signed an option agreement with Junior Investment Company (JIC) in September 2009 in respect of JIC’s 39.1% shareholding in Hampton. In January 2010, Hampton announced a pro-rata rights issue, and Metminco subscribed for 4.5m shares, its full entitlement under the first and second round, at a cost of A$1.2m and increased its interest in Hampton to approximately 37.8%.
Upon closing the deal with JIC, Metminco will own between 55% and 69% of Hampton depending on the exercise of pre-emption rights among the un-listed company’s other shareholders. The JIC deal is expected to be completed by 30 April 2010. The JIC transaction was recently approved by Metminco shareholders on 12 March 2010.
With the exercise of the JIC option, and with all Hampton shareholder exercising their rights in full, Metminco’s holding in Hampton will increase to approximately 55%, through the issue of approximately 72m shares and a payment of US$6.6m. Should no other Hampton shareholder exercise their pre-emptive rights in full, Metminco will acquire 69% of the company by the issue of 132.7m shares and a US$12m cash payment.
Additionally the company noted that its A$14m convertible note facility with BBY has lapsed as a result of the current capital raising.
Metminco’s previously announced sale and purchase agreement with Highland Holdings Resources (HHR), to acquire 100% of the issued capital of North Hill Holdings Group, will become unconditional on completion of the JIC Option and it will be completed concurrently with the JIC Option. The North Hill Holdings Group indirectly owns 100% of the Alpha, Gamma and Nelson tenements in southern Peru.
London-based stockbroker Daniel Stewart said that Metminco has a very experienced management team, with a history of success and it may achieve further growth now it has structural control of Hampton and Los Calatos. According to the broker, the Los Calatos is a world-class copper deposit, with a 6km strike length which remains open in all directions.
Daniel Stewart also noted the company’s other projects which may provide growth, including the Las Mollacas project which could begin production by Jan 2012 and the Camaron, Isidro and Vallecillo projects.
