Mineral explorer and producer Kagara Ltd
(ASX:KZL) says it has reached an agreement to purchase the Liontown polymetallic resource from Liontown Resources Ltd
(ASX:LTR) for $4.5 million.
The payment will include $2.24 million of Kagara shares with the remaining $2.25 million to be paid on the commencement of mining operations.
Kagara says the acquisition will significantly increase the company’s resources in the Thalanga area in QLD and follows on from the recent upgrade to Kagara’s Thalanga plant to enable the processing of polymetallic ore.
The company says the Liontown deposit increases total zinc resources in the Thalanga plant area to 3.984 million tonnes at 8% zinc, 2.3% lead, 1.1% copper in excess of 300,000 tonnes of zinc.
Kagara posted a $94 million loss for fiscal 2009.
