Aus Tin Mining has entered into a sale and purchase agreement (SPA) to sell subsidiary Taronga Mines, owner of the Taronga tin project in New South Wales, to First Tin.
Under the terms of the SPA, Aus Tin will receive 60 million shares in First Tin, or a minimum of 22.6 per cent of the shares in First Tin, at an expected issue price of not less than 30 pence in conjunction with a capital raising of at least £20 million ($36.4 million).
At current exchange rates, the value of the share consideration to be received by Aus Tin is $33 million.
In addition to the share consideration in First Tin, Aus Tin will receive $1.35 million and one board seat provided its shares in First Tin continue to represent more than 10 per cent.
Laneway Resources has a 20 per cent shareholding interest in Aus Tin, with its current value at $6.8 million.
“This sale transaction will unlock value in the New South Wales tin assets of Aus Tin and provide funding for an accelerated mine development of the Taronga project, whilst allowing continued exposure to the potential upside in the project via the shareholding in First Tin,” Laneway managing director Brad Gordon said.
“The transaction will also enable Aus Tin to give increased focus on progressing its other projects including the Ashford coking coal project, and its Queensland nickel and cobalt assets at Mt Cobalt and Kaldanga.”
Taronga Mines has a strong presence in the Emmaville district in northern New South Wales, with the district producing 88,000 tonnes of tin in concentrates.
The Taronga project boasts a JORC 2012 indicated and inferred resource of 36.3 million tonnes at 0.16 per cent tin containing 57,200 tonnes of tin.
First Tin is a United Kingdom-based, tin-focussed company with assets in Saxony, south-eastern Germany, close to the Freiberg Cluster – a hub for raw materials research and development and home to the largest collection of smelters in Europe.