(MENAFN- ProactiveInvestors)
() will become a zinc exploration and development company with established resources after agreeing to merge with the privately held Marindi Metals Pty Ltd.
Brumby’s mineral assets include the McArthur Project a prospective base metal exploration project in the Northern Territory which is optioned to Teck Australia Pty Ltd.
The importance of new zinc discoveries continues to build due to the imminent closure of several major mines this year which has some forecasts for the metal being in deficit by 2020.
Brumby's shares are expected to gain on the announcement of the deal as the company is now repositioned at the forefront of the Australian zinc industry.
Marindi is earning a 100% interest in the Newman Base Metal Project which a and highly prospective zinc and base metal exploration and development project located 60 in the Pilbara region of Western Australia.
The project has established resources which include a JORC 2012 Indicated and Inferred Resource of 3 million tonnes at 5% zinc 1.6% lead and 15g/t silver at the Prairie Deposit.
Adding to the prospectivity of the Wolf Prospect which is 2.6 kilometres along strike is drilling results such as:
- 8 metres at 11.1% zinc 8.0% lead and 73g/t silver from 97 metres; and
- 9.1 metres at 9.2% zinc 8.8% lead and 49g/t silver from 185.3 metres.
In conjunction with the transaction Brumby intends to undertake a $3.75 million Capital Raising comprising a $1.25 million share placement and $2.5 million entitlement issue.
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