Aus Tin Mining Ltd Entered Into Non-Binding Heads Of Agreement With Lucas For The Sale Of Waste Rock At Granville

  • Mar 29, 2019 AEDT
  • Team Kalkine
Aus Tin Mining Ltd Entered Into Non-Binding Heads Of Agreement With Lucas For The Sale Of Waste Rock At Granville

On 29 March 2019, the directors of Aus Tin Mining Ltd (ASX: ANW), an Australia based exploration and tin production company shared an update regarding the Granville Tin Project.

The company have signed a non?binding Heads of Agreement with Lucas Total Contract Solutions (Lucas), where the company will be supplying Non?Acid Forming (NAF) waste rock from the Granville East Mine. These waste rock from the Granville East Mine will be used for the purpose of construction at the Granville Harbour Wind Farm (Wind Farm).

The development of Wind Farm worth $280 million consists of 31 turbines with a 112?megawatt capacity. It is expected that it will become operational in late 2019. The total distance between Wind Farm and Granville East Mine via Heemskirk Road is 5.5km. On receiving the regulatory approvals, this agreement will contemplate the sale of approximately 120,000 tonnes of NAF waste rock from the existing waste rock that is placed immediately east of the open?cut.

Through the proposed sale of NAF waste rock, the company will have two benefits. The first is that it will act as an additional revenue stream and the second is that it will reduce the provision for future site rehabilitation. Moreover, after the receipt of all the regulatory permitting conditions, the financial benefits linked with the agreement will be analyzed. Further, the financial benefits are expected to equate to four or five months of owner mining operating costs, with a proportionate reduction in the previously announced forecast cash costs that was estimated at $100,000 to $130,000 per month depending on the blasting requirements inclusive of all equipment rental, fuel as well as labour.

In the mid of March 2019, the company assumed the owner mining. It will be proceeding towards the opportunities for further operational and financial efficiencies and improvements.

At present, Aus Tin Mining Ltd has started the process of obtaining necessary approvals where it will be working with Lucas as well as the regulators to complete the process as early as possible keeping in mind the potential environmental benefits of the reduced ground disturbance at Granville East mine as well as the Wind Farm. In the meanwhile, at the processing plant, the processing of the ore as well as the production of tin concentrate will take place.

For the half-yearly period ended 31 December 2018, the company made a loss of $1,934,341. The balance sheet of the company reported a net asset base of $8,292,849. By the end of the period, the company had net cash and cash equivalent worth $54,503.

In the last six months, the stock has given a negative return of 39.13%. However, the stock has given a positive YTD performance where it has generated a return of 7.69%. By the end of the trading session on 29 March 2019, the shares of ANW traded flat on ASX. The closing price of the stock was A$0.014, which was similar to the previous trading day’s closing price. The company has a market capitalization of A$27.83 million and approximately 1.99 billion outstanding shares.


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