The New Zealand government has agreed to the change of control between Strategic Minerals and King Country Mining Ltd (KCM) for Strategic Minerals to acquire the Tatu mining licence.
Strategic Minerals is set to acquire 51% of KCM, subject to regulatory approvals and funding. Before the company can acquire the remaining 49%, the company has until the end of January 2016 to provide the financial capacity to complete the mine. The vendor of KCM has the right to acquire the 51% interest in KCM back for NZ$1 if Strategic Minerals does not follow through with this exercising option.
John Peters, the Managing Director of Strategic Minerals, commented”: "The New Zealand government's approval to the change in ownership of KCM is an important and crucial stepping stone in our plans to develop the Tatu mine. We are currently well developed in our mine plan and are in discussions with suppliers, which we believe, in conjunction with our recent capital raising, will provide the vendor of KCM sufficient comfort on Strategic Minerals' financial capacity to complete the project. In the interim, the recent fund raising has provided us the ability to continue preliminary works, including a bulk sample to assist in coal analysis and customer evaluation. Strategic Minerals is targeting commencement of the mine construction by the year end and targeting completion of the mine in mid-2016. We are aiming to achieve some sales during the construction period with greater sales volumes expected after completion of the mine."
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/exploration-and-development/16072015/new-zealand-government-approves-change-of-control-of-tatu-mining-licence-2570/