Resource News

Zinc and copper producer Kagara buys metals deposit

ZINC and copper producer Kagara has bought a metals deposit from Liontown Resources for $4.5 million.

Kagara has agreed to buy the Liontown deposit, which is thought to have a resource of 1.85 million tonnes at 7.5 per cent zinc, 2.4 per cent lead, 0.6 per cent copper, 28 grams per tonne of silver and 0.55 grams per tonne of gold.

The company will pay Liontown Resources $2.25m in Kagara shares, plus another $2.2m on commencement of mining operations.

The deposit, adjacent to Kagara’s Waterloo deposit, would significantly increase the company’s resources in the area, Kagara said in a statement.

The deposit, near Charters Towers, in Queensland’s northeast, is 30km from Kagara’s Thalanga processing plant.

Completion of the deal is expected on Wednesday, when the Kagara shares will be issued.

Liontown managing director Doug Jones said that, given Kagara’s ownership of Waterloo and the nearby processing plant, it was a natural buyer of the project…read more at The Australian