The Company has commenced the identification of potential new value adding projects and is currently carrying out preliminary due diligence on several projects in a select number of commodity groups.
The current market environment has resulted in many opportunities for companies with available funding and/or funding support and management teams that add value by revitalising and moving advanced but typically dormant or underdeveloped projects forward.
Metallica will only consider projects which have:
- real scale
- can attract good management
- established and financially robust partners; and
- are in an in-demand commodity that allows for profitability sufficient to ride out the cyclic up and downs of commodities
The Company will not be bound by any specific commodity or jurisdiction, but continues to believe additional bauxite projects are a high priority commodity of interest. However, we shall remain disciplined and ensure that any acquisition adds value to shareholders and meets our stated criteria.
For Metallica, bauxite projects should preferably contain low temperature bauxite, be located within the Pacific Basin to ensure more advantageous access to China, be producing or near producting assets and be able to trade through the cycle.
Our bauxite objective is to achieve sales of 5-7Mtpa within 3-5 years.
During 2015, Metallica has had a number of achievements which place the Company in a good position to commence 2016.
- $500,000 sale of Ootann Limestone Project
- $370,000 sale of Star Limestone Project
- $450,000 Nickel Royalty received for Dingo Dam Mining Lease, a further $200,000 to be received
- Mining Lease Application lodged for Urquhart Point Bauxite Project
- Balance of 7.5Mt Inferred Bauxite JORC Resource at Urquhart Point Bauxite Project, Direct Shipping Bauxite also confirmed
- $7.5M received from Joint Venture Partner to progress the Cape York Heavy Mineral Sands (HMS) and Bauxite Projects
- Completed fabrication of 110tphr HMS processing plant – currently being transported to Brisbane
- Further advance Urquhart Point Bauxite Project and progress gaining approvals for a modest 1.5-2Mtpa Direct Shipping Bauxite (DSB) operation
- Continue to review low temperature bauxite opportunities located in the Pacific Basin
- Identify and evaluate other value-adding projects
- Complete further drill program at Esmeralda Graphite Project near Croydon, QLD
- Review plans for development of the Urquhart Point HMS Project
- Continue to realise value from non-core assets
- Progress negotiations for joint venture partners for the SCONI nickel-cobalt-scandium project
- Investigate commercial opportunities on Metallica’s Scandium Intellectual Property
The company’s 2,009 shareholders include China’s second largest nickel producer, the Jilin Group (through its subsidiary, Jien Mining Pty Ltd).
The Metallica Name
Metallica was named after the definitive classic 16th century mining and metallurgy textbook, De Re Metallica (‘On the Nature of Metals’ or ‘All about Metals’). First published in 1556, it was the best known work of the German scientist and “father of mineralogy”, Georgius Agricola, and remained the authoritative text on mining for 250 years after its publication. De Re Metallica was translated into English in 1912 by one Herbert C. Hoover, a mining engineer who worked in Western Australia and went on to become the 31st President of the United States.