Located 60km north-east of Mount Isa, the Barbara Copper Project contains a JORC 2012 mineral resource which has operated as a joint venture since 2013.

Syndicated Metals managing director Andrew Munckton said CopperChem were in the best position to develop this asset given their strong operational base in North Queensland.

"(This) enables them to move the Barbara Copper Project forward against the backdrop of an improved copper price and cost environment in North Queensland,” Mr Munckton said.

The partners completed an off-site processing study in 2015 based on the development of two open pits. Processing will be undertaken under a toll-treatment under a two-year project life.                 

The study showed the project was sensitive to price fluctuations and hinged on processing terms from toll-treatment providers. 

Based on the study and a revised corporate strategy, Syndicated Metals acquired the Monument Gold Project, WA in mid-2016, and focused its efforts on gold exploration in prospective Laverton District of Western Australia.  

CopperChem will pay $2.3m on completion of the sale and purchase agreement. It also includes for production royalties payable on the first 10,000t of copper-in-concentrate (or ore-equivalent) produced by the project. The royalty includes 1% of the net smelter return (NSR) from the sale of concentrate or ore equivalent to a minimum copper price of $2.50/lb and 2% of the NSR generated from the sale of concentrate or ore equivalent to a minimum copper price of $3/lb.

The transaction is subject to approval from Syndicated’s shareholders and approval from Queensland Mines Minister Dr Anthony Lynham.