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Consolidated Tin Mines plans to take over Auctus-owned operations in the Chillagoe region, west of Cairns, under a new $26.5 million deal with administrators.

The acquisition includes the Mungana processing plant, the inactive Mungana mine and the King Vol polymetallic mine, which produces about 360,000 tonnes of ore per annum.

Consolidated Tin Mines (CSD) says combining the Auctus assets with its existing operations in the region will deliver a well-diversfiied, high-grade, long-life polymetallic business.

Managing director Ralph De Lacey highlighted the gold producing potential in the package, with significant gold mineralisation identified around the Red Dome gold mine, Mungana mine and other areas.

“The gold producing potential will be a high priority for the company in the short to medium term,” he said.

Consolidated Tin Mines proposes to change its name to Aurora Metals Limited as part of the business transformation.

A previous agreement for CSD to acquire the assets for $53.3 million fell through in March and Auctus Resources was placed into voluntary administration.

Consolidated Tin said it had successfully particpated in a revised sale process through the administrator, resulting in a Deed of Company Arrangement covering the same assets involved in the February sale deal.

For the sale to go ahead, the agreement must be approved by an Auctus creditors meeting expeceted to be held this month, by Consolidated Tin shareholders and by the Foreign Investment Review Board.

Consolidated Tin has paid a $2 million deposit to the administrator as an advance payment.

The company also announced that it had sold its tin tenements to Tableland Mining Group for $4 million.

A deposit of $2 million had been received, with the final payment to be made upon FIRB approval, it said.


IMAGE: The King Vol mine, under care and maintenance, is part of the sale deal.


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