New Century Resources intends to pursue Century Bull’s 30 per cent share in the ongoing Century Mine rehabilitation project, increasing its ownership from 70 per cent to 100 per cent.
The acquisition is expected to go ahead dependent on New Century’s shareholder approval.
The Century mine began open pit production in 1999, and became one of the world’s biggest zinc mines until it ceased production in 2016.
New Century has since committed to the mine’s economic rehabilitation, incorporating work on the site’s tailings storage facility, evaporation dam, and on- and off-lease phosphate resources.
The deal is expected to go ahead as an equity transfer subject to 12 months’ escrow, with New Century’s interest of combined shares and options expected to increase from $376.2 million to $537.2 million overall as a result.
Century Bull’s shareholders, meanwhile, will receive 126 million ordinary shares and 35 million options with a three-year expiry as a result of the purchase.