PLD Corp acquires two mining tenements

PLD Corporation is set to go ahead with the acquisition of the Admiral Bay Zinc project and the Rocky Gully nickel copper project under a $10 million deal.

PLD announced it will use $10 million in equity and debt funding from Resource Capital Funds and Mining Finance Fund to broker the deal.

The money will also be used to bankroll 24 months of work on the two projects.

PLD will acquire the Admiral Bay zinc project with a payment $500,000 as well as a $500,000 convertible note and a 1.5 per cent net smelter royalty.

A further milestone royalty of $2.5 million is payable when the third year of production commences at the site.

Meanwhile, PLD will acquire a 90 per cent share in the Rocky Gully project by paying $230,000 in cash or shares, as well as a 1.5 per cent net smelter royalty.

PLD said the acquisition of the projects will constitute a change in the nature and scale of the company’s activities and as such, the deals must be approved by the company’s shareholders.

The Admiral Bay zinc project is one of the world's biggest undeveloped zinc projects, hosting an inferred mineral resource estimate of 72 million tonnes at 6.7 per cent zinc equivalent and an exploration target of 170-250 million tonnes at 5.3-7.5 per cent zinc equivalent.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.