Red Kite steps into MacPhersons and Nimbus
Mark Mentiplay, 21st Aug 2012
AUGUST 21: The Nimbus silver mine, once the biggest silver mine in Western Australia, has received another shot in the arm via a silver offtake agreement and $A6.6M from major international financier and metals trader RK Mine Finance.
The money comes via a placement by 100% Nimbus owner MacPhersons Resources that will give RKMF a 6.8% stake in the company, the first equity investment this arm of the Red Kite Group has made in an Australian company.
MacPhersons’ M/D Morrie Goodz told Mining Business Media the money will be used for an expanded drilling program and to buy a new 480,000tpa Merrill Crowe silver/gold processing plant, expected to be commissioned in late Q3 2013 to produce about 1.5Moz-2Moz of silver in its first full year. This will be followed by the addition of a sulphide plant and gold circuit in 2014 to take silver production to 2.5Moz in 2015.
Nimbus’ JORC resources near Kalgoorlie stand at 2.8Mt at 139g/t silver equivalent, for 12.5Moz silver equiv that includes 10.1Moz silver, 34,300t zinc and credits for gold, mercury, copper and lead. Drilling is continuing at Nimbus, where the resource remains open at depth.
The offtake deal is not hedged and delivers MacPhersons the full upside to all increases in the spot price of silver.
"The addition of RKMF to our register represents a significant gain for MacPhersons in attracting a leading international metals merchant as an institutional shareholder with the company,” Goodz said.
RKMF is part of the Red Kite Group that includes RK Capital Management, which has over $US1.3B of assets under management. RKMF has previously carried out two $80M funding deals for Allied Gold and arranged $15M for Central Norseman Gold some years ago.
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