PERTH (miningweekly.com) – ASX-listed junior Heemskirk Consolidated has signed a sales agreement with Marquis Alliance Energy Group to sell its Lethbridge mineral plant, in Canada, for C$12-million.
The company said on Tuesday that the sale was in line with its strategy to focus on the development and commissioning of its C$26-million Moberly facility.
“Heemskirk is at a key juncture with regard to developing its opportunities. We believe this transaction best generates solid shareholder value by further strengthening our cash reserves and allows us to focus on the development of the Moberly frac sand project, in British Columbia, at a time when that nation’s energy sector is at the early stages of development of a forecast and sustainable expansion of its onshore oil and gas exploration and production profile,” said Heemskirk MD Peter Bird.
The Lethbridge business, which is an oilfields energy product minerals processing facility, was acquired by Heemskirk in 2005, and takes delivery of barite, gypsum and zeolite ores and beneficiates these with a crushing, grinding, classification and packaging process.
Heemskirk noted that consideration for the sale would consist of an initial payment of C$8.44-million in cash, along with C$2.56-million for the plant’s current inventory of primarily bulked and bagged product.
Should Heemskirk accept and close a superior competing offer from a third party, a break fee of C$500 000 was payable to Marquis Alliance, provided that prior to accepting a superior offer, the company had the right to match the offer.
The transaction was subject to board and shareholder approval, as well as the necessary regulatory approvals.