Galena Mining plans to divest its non-core assets into a separate entity, Metal Range, which will be self-funding and operate independently.
The company’s early-stage polymetallic base metals exploration prospects – Woodlands, Manganese Range and Quartzite Well – will move under the Metal Range entity. This includes four exploration licenses associated with the prospects.
Galena’s announcement follows the completion of the pre-feasibility study at the Abra lead-copper-silver-gold project.
Managing director Alex Molyneux said, “Galena is ‘laser-focussed’ on getting Abra into construction in 2019, and the separation of Metal Range helps that, whilst it may also create additional optionality for our shareholders to participate in a separate ASX listing and priority offer.”
Metal Range will prioritise and extend fund raising opportunities to Galena shareholders. Meanwhile, Galena expects to hold a 10–20 per cent interest in Metal Range after a separation of funding activities.
Galena will retain the exploration license that falls in the immediate surrounding of Abra; the project’s mineralisation is open to the north-west, south and south-east as well as at depth.
The company will, therefore, continue to have outstanding development potential around its core asset.
The Abra base metals deposit (lead-copper-silver-gold) is one of the largest, undeveloped lead deposits in the world. It is 200km north of Meekatharra in the Gascoyne region of central Western Australia.
Abra’s 2018 JORC resource contains over 5 million tonnes (Mt) of lead and silver with a high-grade component of 11.2Mt at 10.1 per cent lead and 28 grams per tonne (g/t) silver within 36.6Mt at 7.3 per cent lead and 18g/t silver.
Under a new stand-alone entity, exploration activity on the Metal Range prospects will be able to be accelerated as a priority.