Metals X will explore “various options” for its copper assets, including joint ventures, partial or complete divestment of some or all assets, in a strategic review.
The company has appointed Canaccord Genuity and Hartleys as joint financial advisors to work with the board and find the most feasible option.
The assets under review include the Nifty copper mine, the Maroochydore copper project and the surrounding Paterson exploration tenure, which are all located in the Pilbara region of Western Australia.
Metals X suspended operations at the Nifty mine in late November last year after production plateaued at the beginning of the month.
The Nifty mine, processing facilities and infrastructure were subsequently placed on care and maintenance, leaving nearly 300 people without jobs.
Despite an improvement to Nifty’s resources and reserves following its reset plan in May 2019, an operational review showed that it was unlikely to achieve planned production at a reasonable cost.
“The company sees significant value in the Nifty copper mine existing resource and production-ready infrastructure, its leverage to improving copper prices and significant exploration potential through its Paterson regional landholding,” Metals X stated.
“Metals X will focus on maximising value for its shareholders during the strategic review. The review will not necessarily result in a transaction.”
The company will not be releasing any further updates until the review process is complete.