Polymetals Resources (ASX:POL) is making steady progress on its Endeavor Mine Restart Study in New South Wales even as it winds down exploration work in Guinea.
In a fresh business update, the $43.11 million market capitalisation company says the Mine Restart Study remains on track for release in the December quarter, with operational recommencement financing ‘well advanced’.
The news comes after the company secured a $15 million concentrate prepayment facility with global trading firm Ocean Partners UK for the progression of the Endeavor Mine Restart Study.
The facility included a $500,000 equity contribution to the company’s June 2023 capital raising.
In addition to the facility secured with Ocean Partners, Polymetals is continuing to advance discussions with various other debt providers to ensure Endeavor Mine Restart will be well funded.
Meanwhile, Polymetals says it continues to advance discussions with various other debt providers to ensure the Endeavor Mine Restart will be well-funded.
Polymetals says mine restart capital determined during due diligence and confirmed by the current mine restart study work remains ‘modest’ by industry standards.
Further, as announced last week, Ocean Partners and Polymetals have entered a Memorandum of Understanding (MoU) for the purpose of agreeing to commercial terms to replace the Endeavor Mine Environmental Rehabilitation Bond for $27.96 million.
The replacement of the bond is subject to a ‘positive’ mine restart study outcome and is the final stage of the Endeavor acquisition.
The company says the focus of the mine restart study is to fully investigate the remaining resources, with the aim of generating sufficient ore reserves to restart Endeavor Mine production.
In addition, present-day capital and operating costs, alongside relevant environmental, social, and governance (ESG) aspects of the project, are also being investigated by Polymetals staff and specialist external consultants.
Further to the Restart Study work, Polymetals has assessed the ‘enormous’ paper and electronic mine and exploration database generated by various explorers over almost 50 years in the Endeavor Mine area, with new ‘near-mine’ and ‘in-mine’ exploration targets identified.
Over in Guinea, however, Polymetals has placed its Alahiné and Mansala gold exploration licenses on care and maintenance.
The company says it continues to await licence renewals for the areas, but there is no visible timeframe for renewal. As such, having exhausted all ‘reasonable avenues’ to obtain the licence renewals, Polymetals has instead resolved to shut down the Guinea operations until they can be joint ventured, farmed out, or sold.
Polymetals reports its current cash position stands at $2.3 million.
Polymetals Resources is an Australian mining and exploration company with a project portfolio with ‘significant’ potential for the discovery and development of precious and base metal resources.
Write to Aaliyah Rogan at Mining.com.au
Images: Polymetals Resources