Zinc and copper producer Kagara Ltd has bought a metals deposit from Liontown Resources Ltd for $4.5 million.
Kagara has agreed to buy the Liontown deposit, which is thought to have a resource of 1.85 million tonnes at 7.5 per cent zinc, 2.4 per cent lead, 0.6 per cent copper, 28 grams per tonne of silver, and 0.55 grams per tonne of gold.
The company will pay Liontown Resources $2.25 million in Kagara shares, plus another $2.25 million on commencement of mining operations.
The deposit lies adjacent to Kagara's Waterloo deposit and will significantly increase the company's resources in the area, Kagara said in a statement.
The deposit is near Charters Towers, in Queensland's northeast and is just 30 kilometres from Kagara's Thalanga processing plant.
Completion of the deal is expected to occur on January 6, when the Kagara shares will be issued.
Liontown's managing director Doug Jones said given Kagara's ownership of Waterloo and a nearby processing plant it was a natural buyer of the project.
Source: AAP
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