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Pacifico seals the deal at Sorby Hills to become majority owner

Published 10-OCT-2018 10:19 A.M.


2 minute read

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Pacifico Minerals Ltd (ASX:PMY) has finalised a Binding Terms Sheet with Quintana MH Holding Company LLC to obtain all of the shares in KBL Sorby Hills Pty Ltd and Sorby Management Pty Ltd.

KBL Sorby Hills Pty Ltd owns 75% of the Sorby Hills project with China’s largest lead smelting company and silver producer Henan Yuguang Gold & Lead Co. Ltd (“HYG”) owning the remaining 25%.

With all conditions precedent having now been satisfied or waived since the original agreement was struck in June, the acquisition has been completed.

This sees Pacifico as the majority owner of the largest undeveloped near surface lead-silver-zinc deposit in Australia on granted mining licenses with environmental approval in Western Australia.

Importantly, the project has been significantly de-risked with extensive resources as outlined below and a prefeasibility study already undertaken.

It is worth noting that the ore is situated close to surface which could potentially provide Pacifico with a high margin operation.

Results show PMY could have a high margin operation

Commenting on the company’s near term strategy, Pacifico’s Managing Director, Simon Noon said “The acquisition of Sorby Hills is an exciting step forward for Pacifico and provides us with a high-quality cornerstone asset.

“With the transaction now completed Pacifico will shortly commence extension and infill drilling at the project, aimed at significantly upgrading the Resource.

“The company looks forward to providing further details of the upcoming drilling program prior to commencement which is planned to take place in around two weeks.”

Of course any results from this program are speculative at this stage, so investors should seek professional financial advice if considering this stock for their portfolio.

Excellent infrastructure access

The project is only 50 kilometres by road from the mining hub of Kununurra.

Should the company move to production, there are established roads to transport concentrate via road train from the Sorby Hills site to the facilities at Wyndham Port, approximately 140 kilometres.

Sorby Hills is surrounded by vital infrastructure.

Operations will utilise existing port facilities, with no additional infrastructure required to enable shipping of concentrate.

Pacifico also has interests in Mexico where the company is advancing the Violin Gold-Copper Project located within the Guerrero Gold Belt.

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S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

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