Bond agreement keeps Endeavor deal on track

POLYMETALS Resources and Ocean Partners have signed a non-binding memorandum of understanding to replace the Endeavor Mine Environmental Rehabilitation Bond, the final condition needed to complete Polymetals’ acquistion of the Endeavor mine.
Bond agreement keeps Endeavor deal on track Bond agreement keeps Endeavor deal on track Bond agreement keeps Endeavor deal on track Bond agreement keeps Endeavor deal on track Bond agreement keeps Endeavor deal on track

The above ground conveyors at the Endeavor site.

Polymetals is conducting a study into whether it is feasible to get the zinc-lead-silver mine near Cobar in New South Wales back in action. That study is on track to be completed in the December quarter.

Should the study be successful, base and precious metals trader Ocean Partners has proposed providing a surety to Polymetals guaranteeing the $27.96 million bond for up to four years.

Polymetal hopes to get a first concentrate shipment from Endeavor early in the second half of 2024.

Ocean Partners recently gave Polymetals a $15 million concentrate pre-payment facility, which included a $500,000 equity contribution to its June capital raising.

That raising, via a share placement, brought in $3.65 million.

Since then Polymetals has also received a $500,000 NSW government Critical Minerals Activation Fund grant to help with its mine restart study.

The bond replacement completes Polymetals purchase of the Endeavor mine. That includes the mining leases, a fully permitted underground mine, a 1.2 million tonne per annum concentrator, rail, secure water, grid power, and 42 houses and four blocks of units in the Cobar township.

Polymetals Resources executive chairman David Sproule said Ocean Partners' support via the pre-payment facility and now assistance with the environmental bond replacement was a testament to its confidence in the Polymetals team, the Endeavor mine and the outlooks for silver, lead and zinc.

"Our well-established partnership should not be underestimated as it provides all key elements to give the Endeavor mine its absolute best chance to be brought back online as a long-term and profitable silver, zinc and lead producer," Sproule said.