The Queensland Resources Council has welcomed the proposed merger of Queensland’s Metallica Minerals and Canadian company Melior Resources as further proof of growing confidence in the state’s resources industry.
Under the proposal, Melior will become a wholly owned subsidiary of Metallica, which will remain listed on the Australian Securities Exchange.
The merged companies’ assets include:
– Goondicum ilmenite and phosphate rock mine
– Cape York heavy mineral sands and bauxite project joint venture
– Cape Flattery silica sands project
– Esmeralda graphite project
“At a time when the resources sector is creating a new job every hour and $1 billion in exports every week, the proposed (merger) is further good news for a sector doing great things in Queensland,” QRC chief executive Ian Macfarlane (pictured) said.
Melior chief executive officer Mark McCauley described the deal as a great opportunity for Melior to keep moving forward and position itself for genuine shareholder wealth creation.
Mr McCauley said the Goondicum operation at Monto in Central Queensland was on schedule to commence production in November and start generating cash by the second quarter of 2019.
Metallica chairman Peter Turnbull described the proposed merger as a transformational deal for both companies.
“Melior’s Goondicum ilmenite project shares similar attributes to Urquhart bauxite in that it is fully funded and will be brought into production relatively quickly for a modest capital outlay and will provide a valuable source of near-term cash flow,” he said.
“We look forward to combining the respective skills of the two companies to successfully develop those projects and pursue further growth opportunities to build a significant, profitable, mining house generating excellent returns for shareholders.”
Post-merger, the Metallica board of directors will consist of three directors from Metallica (Simon Slesarewich,
Peter Turnbull and Ian Jacobson) and three directors from Melior (Mark McCauley, Martyn Buttenshaw and George
Lloyd). Metallica’s Simon Slesarewich will retain the managing director’s role.