Polymetals Resources (ASX:POL) has exchanged the $28 million Endeavor Mine rehabilitation bond, completing the final step in its acquisition of the Endeavor Project in New South Wales.
The company utilised existing cash reserves to exchange the bond previously held by CBH Resources, a subsidiary of Toho Zinc (TYO:5707).
The bond, provided by Macquarie Bank, remains as restricted cash in an interest-bearing account with the NSW Resources Regulator.
With the bond exchange completed, Polymetals is expected to be released from vendor-held senior security over the project and acquire 100% ownership of Cobar Infrastructure (CIPL) by 30 July 2026.
CIPL owns a real estate portfolio in Cobar valued at $19 million, comprising 42 houses, four unit blocks totalling 51 rooms, and industrial land.
Polymetals Executive Chairman Dave Sproule says the bond exchange marks a ‘significant’ milestone for the company.
“Full ownership of Endeavor and now [being] able to deal with the substantial CIPL real estate portfolio provides greater flexibility to our financial management of the project,” Sproule says.
He adds that using existing cash reserves to exchange the bond demonstrates the “increasing strength” of its balance sheet.
Polymetals Resources is a silver and zinc producer operating and expanding the Endeavor mine in the Cobar Basin of NSW.
Write to Paula Fabe at Mining.com.au
Images: Polymetals Resources
