Perth-based mining and exploration company IGO is about to buy almost a fifth stake in North West Queensland's New Century Resources in a $27 million deal.
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New Century, owners of Century Mine zinc mine 350km north west of Mount Isa, told the ASX that IGO will acquire 18.4 per cent of the company.
New century issued 158,500,000 new fully paid ordinary shares to IGO last week at an issue price of 15c each to raise a total of $23.775 million.
There is also a $3.225 million priority sub-underwriting commitment from IGO.
It is part of a $51.1 million capital raising that will allow New Century to ramp up operations at the Century mine to 12 million tonnes a year.
IGO will collaborate with New Century on opportunities within the Century tenements, with the potential to form a joint venture agreement should an asset be deemed suitable.
New Century managing director Patrick Walta told media the fully underwritten capital raising provided important working capital for what was now an established top-10 global zinc mine and in the final stages of a ramp up to it nameplate capacity up to 15 million tonnes a year.
IGO also has the right to appoint a member to the New Century board as long as its stake remains above 10 per cent.
IGO, which has a market capitalisation of $2.92 billion, owns the Nova nickel-copper-cobalt operation and 30pc of the Tropicana joint venture with AngloGold Ashanti, both in Western Australia.
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
