Save
Print[Ferro-alloys.com] CARPENTARIA Exploration has struck a deal with a major investor in the company, avoiding a battle for control of its board.
Silvergate Capital, which owns about 19 per cent of Carpentaria, had called for a general meeting of the company in a bid to replace the board with its own nominees.
But Carpentaria instead struck a deal with Pure Metals a company associated with Silvergate to jointly develop the company's large Hawsons magnetite iron ore project just over the border in New South Wales.
The deal involves Pure Metals contributing $5 million towards a bankable feasibility study for Hawsons and reimbursing Carpentaria $3.8 million for past expenditure.
The owner of Silvergate, Wilson Cheung, will be invited to join the Carpentaria board.
Pure Metals would also acquire the 40 per cent stake in the Hawson's project previously owned by Bonython Metals group, which is in liquidation.
Carpentaria executive chairman Nick Sheard said it was a good outcome.
"Carpentaria has maintained a philosophy of preserving shareholder capital and we have again delivered on this for shareholders," he said.
"Today's agreement with Pure Metals and, through them, with Silvergate, offers benefits to all parties.
"For Carpentaria shareholders it gives access to additional funding in the short term and allows critical project momentum to be maintained.
"It also allows both parties to commit maximum efforts to securing the significant development partner that a project of Hawsons' scale needs.
"I firmly believe that with this agreement, Carpentaria and Pure Metals/Silvergate can now work cooperatively on the common goal of moving Hawsons from 'studies' into a profitable mine for Broken Hill, our shareholders and the nation."
Pure Metals and Silvergate Director Ed McCormack welcomed the agreement.
"Hawsons Iron is, in our opinion, the key to securing Carpentaria's long term future and we look forward to working with the company to advance this key asset.
"We also welcome the resolution of the recent disagreement, fuelled by each party's commitment to and passion for the project.
"All shareholders are now very well placed to benefit from this refreshed unity and reinvigorated partnership."
Carpentaria shares were untraded at 30c.
Copyright © 2013 Ferro-Alloys.Com. All Rights Reserved. Without permission, any unit and individual shall not copy or reprint!
- [Editor:editor]
Daily News
Research
Magazine
Company Database
Customized Database
Conferences
Advertisement
Trade
Online inquiry
Contact
Tell Us What You Think