Exco is pleased to announce that it has entered into an agreement to sell the Cloncurry Copper Project (CCP) to Xstrata Copper for $175 million (the Proposal).
Following completion of the Proposal, Excos assets will include:
- Approximately $220 million in cash
- The Hazel Creek advanced stage copper-gold exploration project
- 75% interest in the White Dam Gold Joint Venture
- Great Australia copper royalty entitlement; and
- An additional 2,400km2 of highly prospective exploration tenements in the Cloncurry region, including resources such as Mt Colin, and other advanced exploration projects
Post transaction, Exco will be well funded for a major programme of drilling and test-work at Hazel Creek, where results have shown the existence of large areas of copper-gold-magnetite mineralisation with potential to define large tonnage, open-pit style deposits. Preparations are underway for this programme.
After providing for exploration and business development budgets it is the current intention of the Exco Board to distribute up to $100 million of surplus funds to shareholders.
The Exco Board believes the Proposal is in the best interest of all shareholders and recommends that shareholders approve the Proposal.
A notice of meeting to seek approval of the Proposal will be distributed to shareholders in due course.