Polymetals (ASX:POL) partners with Metals Acquisition (ASX:MAC) for Cobar Basin production

Polymetals (ASX:POL) partners with Metals Acquisition (ASX:MAC) for Cobar Basin production

May 27, 2024 Off By Jack Baker

Polymetals Resources has formed a non-exclusive strategic alliance with Metals Acquisition (ASX:MAC) to synergise and raise the production profile of their respective mines north of Cobar in New South Wales.

Polymetals will receive an investment up to $5 million at 35c a share from its major partner as it moves on a restart at the underground Endeavor silver-zinc-lead mine, the second largest mine in Cobar Basin.

Endeavor sits behind MAC’s leading CSA copper mine 30 kilometres to the south and is now set to treat high-grade zinc ore from its neighbour while providing excess water offtake to enhance ore treatment capacity at CSA.

Polymetals Executive Chairman Dave Sproule said it had operated in the Cobar Basin for many years and was confident the alliance would generate significant benefit for all stakeholders.

“Both companies are managed by long-term solution-focused operators which will unlock value from existing synergies and identify other opportunities as the relationship grows,” Sproule said.

“The Endeavor treatment plant has excess processing capacity which may be utilised by MAC should its current CSA zinc exploration prove positive.”

Sproule added that bringing Endeavor back to production would be a great outcome for the state and region, creating over 200 direct jobs for at least 10 years, with multiple avenues to extend the mine life.

Metals Acquisition Managing Director and Chief Executive Mick McMullen said his company believed the transaction was an example of how cooperation had potential to extract the best value from the basin.

“By investing in POL we are creating a relationship to achieve better outcomes for both companies. We have known the POL management team for over 20 years,” McMullen said.

“They bring a wealth of experience to the area and have the ability to operate mines very efficiently and we are very supportive of their efforts to reopen the Endeavor mine as well as exploring their immediate mine environment which like the CSA Copper Mine is very underexplored for all base metals including copper.”

Polymetals can now defer an environmental bond replacement, take full ownership of Endeavor’s operating assets, and move ahead to finishing up optimisation and financing.

The NSW-based explorer and developer plans to begin refurbishment works at Endeavor early in the second half of 2024, believing it can produce its first concentrate in early 2025.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified. 

MO and CI logo redraw Socials Profile reversed

MarketOpen is an online media business connecting companies and investors. Through its flagship MarketOpen.com.au media channel the Australian publisher’s experienced journalists cover breaking news and analysis on mining, oil and gas, technology and biotechnology companies listed on the Australian Securities Exchange and other markets. MarketOpen’s video and podcasting channels feature original interviews with Australia’s small-cap corporate leaders, while its Stock Soirée networking events, Watchlist webinars, and online events connect investors and brokers with CEOs and board members. The publisher also offers a suite of agency services to its corporate members, including media, video, podcasting and social media services, along with writing, editing, reviewing and content creation services.

Contact info

Suite 3, 47 Havelock Street
West Perth WA 6005

Stewart Walters
Managing Director
+61 414 644 166

Amanda Ellis
+61 438 003 868

Important links

Follow us