Bass Metals, known for its flagship Graphmada large flake graphite mine in Madagascar, has decided to terminate the planned sale of its Tasmanian tenements to London-listed NQ Minerals.
NQ Minerals had already purchased the prospective Hellyer gold mine in the region (last operational in 2000), through the acquisition of Keen Pacific; the Hellyer mine includes over $US1 billion of contained gold, silver, lead and zinc.
The Bass sale, announced in May last year, was to include Bass’s Mount Block tenement and Que River and Fossey mine leases, the latter of which closed in 2012.
Additionally, Bass will recover the Mt Lyell copper-gold mine, Rosebery and Hellyer Rosebery zinc-lead-copper-gold-silver mines, and Henty gold mine as part of the agreement.
Bass Metals announced that it was no longer subject to exclusivity terms set out in the agreement, and was currently in the process of appointing advisors for a formal sale process. The decision was made following discussions with NQM, with the agreement terminated via mutual consent.
Bass was encouraged by price hikes in 2018 arising from supply deficits caused by exploration underinvestment. According to Bass Metals chief executive officer Tim McManus, Bass is “encouraged by the interest it has received in these assets becoming available again at a time of such limited supply.
“We’ll look to maximise the value of our shareholders with this divestment, and expedite the process in that regard.”