Diversified explorer Polymetals Resources (ASX:POL) made ‘significant’ progress towards a decision to restart operations at its Endeavour Silver-Zinc-Lead Mine in New South Wales over Q2 2023.
The $40.14 million market capitalisation company expects to make a Final Investment Decision (FID) during the December quarter of 2023, targeting to restart operations by mid-2024.
In Q2 2023, the company entered a binding agreement for a US$10 million unsecured concentrate pre-payment finance facility and a $500,000 equity investment with global base and precious metals trader Ocean Partners UK.
Polymetals also raised more than $3.751 million through an equity placement, which was cornerstone by Sparta AG and supported by new investment funds as well as sophisticated investors.
Within the mine, the company received all assays for a 21-hole reverse circulation (RC) drilling program, which highlighted ‘exceptional’ zones of ‘high-grade’ silver-gold-zinc-lead mineralisation.
These results underpinned a Mineral Resource Estimate (MRE) of 818,000 tonnes @ 7.1% Zn, 5.1% Pb, and 338g/t Ag for 58,078 tonnes of zinc, 41,718 tonnes of lead, and 8.889 million ounces of silver.
On the corporate front, Polymetals appointed a technical team to progress a Mine Restart Study (MRS) and restart of operations at Endeavor, while financing discussions for the mine restart and environmental rehabilitation bond replacement were ‘well-advanced’.
The company also received ‘overwhelming’ shareholder support to acquire the Endeavor Mine through an extraordinary general meeting (EGM) held on 12 May 2023.
Commenting on the quarter, Polymetals Resources Executive Chairman Dave Sproule says: “The June quarter has been an exceptionally busy time for the company as it beds down resourcing with personnel and capital to support the path to production at Endeavor.
We have assembled a capable team of practical mining professionals and external consultants who are now fully engaged with all aspects of the Endeavor Mine Restart Study.
“The recent support received for the company’s second placement to new investors is a strong endorsement of the Endeavor Project and team”
The recent support received for the company’s second placement to new investors is a strong endorsement of the Endeavor Project and team and confidence in Polymetals’ ability to execute on the plan to restart mining at Endeavor.
We welcome our new shareholders and look forward to delivering a positive Mine Restart Study, building significant value for the company and generating positive outcomes for the Cobar region.”
Polymetals Resources is an Australian precious and base metals explorer focused on restarting operations at its Endeavor Silver-Zinc-Lead Mine near Cobar in New South Wales. Along with Endeavor, the company also holds the Alahiné and Mansala gold projects in Guinea.
Polymetals ended the June quarter with $2.6 million cash at hand.
Write to Harry Mulholland at Mining.com.au
Images: Polymetals Resources Ltd