Metals X is clear to sell off 60% of its Tasmanian tin assets to Yunnan Tin Group (YTG) and place shares with APAC Resources, after the Foreign Investment Review Board (FIRB) approved both transactions yesterday.
As part of the terms of the asset sale, Metals X will receive around $60 million from YTG, the world’s largest tin miner, and form a joint venture to operate and advance the operations.
According to the company, the sale and joint venture is a two stage process, with the first stage being the sale of a 50% interest in the assets for $50 million.
“The joint venture documentation is in its final stages and both parties will now move forward to complete the transaction,” the company said in a statement.
Following the FIRB approval, Metals X will also allot a 15% share placement to Chinese investment company APAC Resources, which will raise around $16 million.
“With the forthcoming completion of these transactions, along with the recent sale of the Mt Keith and Kingston Royalties to Franco-Nevada Australia for $20 million, Metals X is well placed to advance its growth strategy and to continue the development and consolidation of its existing assets,” the company said.