Galena Mining has announced its plans to divest its non-core assets into a separate entity, Metal Range, which will be self-funded and operate independently.
This entity will include the company’s early-stage polymetallic base metals exploration prospects of Woodlands, Manganese Range and Quartzite Well.
Four exploration licenses in Metal Range will include E52/1413; E52/3575; E52/3630 and E52/3581. All other licences, considered part of the core Abra Project, will remain wholly owned by Galen.
This announcement comes after the completion of the pre-feasibility study at the Abra lead-copper-silver-gold project.
Metal Range will seek a listing on the Australian stock exchange and make a priority offering to Galena shareholders for any fund raising.
Galena Mining managing director Alex Molyneux said: “Galena is ‘laser-focused’ on getting Abra into construction in 2019, and the separation of Metal Range helps that, whilst it may also create additional optionality for our shareholders to participate in a separate ASX listing and priority offer.”
Following the separation of funding activities, Galena expects to hold a 10% to 20% stake in Metal Range.
Galena will also continue to hold the exploration license in the surrounding area of Abra.
The Abra field is an undeveloped lead deposit, located 200km north of Meekatharra in the Gascoyne region of central Western Australia.
Its 2018 JORC resource contains over 5 million tonnes of lead and silver with a high-grade component of 11.2 million tonnes at 10.1% lead and 28 grams per tonne (g/t) silver within 36.6 million tonne at 7.3 per cent lead and 18g/t silver.
As a separate entity, Galena will be able to focus all of its resources including its management time and funds to accelerate the development of Abra to move into construction in 2019.