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Queensland Mining sells copper project to Moly Mines for $53m

Queensland Mining (QML) has announced the sale of its flagship White Range copper project in northwest Queensland to unlisted company Moly Mines for $53 million ($45m in cash and $8m in convertible bonds).

The White Range project includes three main deposits (Young Australian, Greenmount and Kuridala), as well as several smaller deposits and exploration prospects.

QML originally bought its White Range tenements in 2010 and spent significant finances on exploration, having tried to secure a partner for the project since 2015 following losses in the 2013–14 financial year.

Its expansive exploration ventures have seen some success (two JORC-listed copper discoveries at its Young Australian deposit, for example), and it seems the company’s goal shifted from looking for a project partner to increasing its commercial viability to potential buyers.

Moly Mines’ $8m in convertible bonds allow it a 10 per cent interest in the White Range project, and QML will still hold 36 other tenements after the transaction.

The deal is expected to take place — subject to shareholder approval — in November or December 2017.

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