Metals X is looking for buyers for its entire Western Australian copper portfolio, including the Nifty, Maroochydore and Paterson exploration projects.
The decision followed the completion of Metals X’s copper assets strategic review, which was released to the Australian Securities Exchange (ASX) on June 11.
Metals X had aimed to decide on whether to complete a feasibility study for recommencement of mining at Nifty in July, and decide on appropriate funding structures for the study and project costs, which are estimated to be a total of $20 million.
With the company also owing $35 million in repayments to its subsidiary company Bluestone Mines Tasmania and a reshuffle of the company board, Metals X has come to the conclusion that selling its copper assets is the best way forward.
“These circumstances have led the board to conclude that divestment of the copper assets is the most appropriate course of action to ensure the financial integrity of the company,” Metals X stated in an ASX announcement.
“In seeking a sale of the copper assets, the company will endeavour to leverage the significant value that has been added through completing of the scoping study and execution of the farm-in agreement.
“Since the release of the update, interested parties, some of which have already conducted initial due diligence on the copper assets have expressed interest in full ownership and will now be invited to submit offers.”
Any proposed transactions will be subject to Metals X shareholder approval.
The board will update the market after holding its extraordinary general meeting, which will be held no later than August 24.