Metallica and Melior sign agreement to create diversified Queensland mining company

Metallica Minerals and Melior Resources on Thursday, September 13, announced that they signed an agreement together to create a diversified Queensland mining company with the aim to boost near-term production potential and the future growth opportunities.

Metallica Minerals Ltd. is an Australian bauxite developer with assets based in Queensland and Melior Resources Inc. engages in the exploration and development of mineral properties in Australia. Their merge will combine mineral sands and bauxite assets, which the companies say share similar project features and will benefit from favourable commodity price outlooks.

The merged entity will reportedly own 50 per cent of the Cape York heavy mineral sands, the Urquhart Point heavy mineral sands (HMS) project, and bauxite project joint venture, the Urquhart Point bauxite (UPBx) project. Both the projects are located adjacent to each other in the south of Weipa on the western side of Cape York Peninsular in north Queensland. Both HMS and UPBx projects have mining license and environmental approvals to start production.

Other projects in its fold will be the Cape Flattery silica sands project and the Esmeralda graphite project.

On completion of the merging formalities, Melior shareholders will hold 64% of Metallica’s issued capital while Melior will become a wholly owned subsidiary of Metallica. The entities together will have approximately US$6.6 million of cash and liquid securities.

“The merger with Metallica is an attractive and low-risk proposition providing a stronger platform for growth via an enhanced pipeline of development assets, a strengthened balance sheet and an ASX listing,” said Melior CEO Mark McCauley.

Metallica chairperson Peter Turnbull is of opinion that this merger is seen as a transformational deal for both the companies.