Asia
Diatreme Resources to Sell Cape Flattery Silica Project in Exchange for More Shares in Cape Silica JV
Diatreme Resources (ASX:DRX) unit Metallica Minerals agreed to sell the Cape Flattery Silica project in Queensland to Cape Silica Holdings, a joint venture between Diatreme and Sibelco Silica, in exchange for additional shares in the JV, according to a Monday filing with the Australian bourse.The deal values the project at about AU$26 million, and allows Diatreme to rationalize its project ownership and boost funding and synergies for its flagship Northern Silica project, per the filing.Sibelco Silica, which holds 26.8% of the JV, will contribute up to about AU$9.5 million in exchange for shares in Cape Silica in a manner that potentially allows Sibelco to retain its current interest. On completion, Sibelco will subscribe for about AU$5.1 million worth of shares in the JV and will receive an option for an additional AU$4.4 million of shares, exercisable before July 7.Using those funds, the JV will reimburse Diatreme around AU$2.1 million for costs associated with the takeover of Metallica, which was completed in September 2024, according to the filing.The deal is subject to Diatreme shareholder approval.Shares of Diatreme gained 6% in recent Monday trading.
ASX:DRX