CopperChem enters agreement to purchase Stockman Project

CopperChem enters agreement to purchase Stockman Project

McCullough Robertson has advised CopperChem Ltd, a subsidiary of ASX listed Washington H. Soul Pattinson and Company Limited, in relation to its proposed acquisition of the Stockman copper-zinc project in north east Victoria from Independence Group NL for $32.2 million in cash payments and a 1.5% net smelter return royalty with a provisional value of up to A$15 million, which then converts to an uncapped 1% net smelter royalty. The agreement to acquire the Project assets is subject to several conditions precedent, including governmental approval of the transfer of the mining assets.  

The Project will involve the concurrent development of two underground deposits to feed a central 1.0Mtpa differential flotation concentrator that could produce approximately 150,000tpa of copper and zinc concentrates over a project life of approximately ten years.  It is expected to move into production in 2018 once all regulatory approvals have been obtained. 

The deal was led by Partner Derek Pocock with the assistance of Senior Associate Jessica Snell.

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