zinc

Royalty Holder…..Resource Capital
Revenue……………..…..………………..n.a.
Mine Life...……………..…………10 years
Commodity……………………………..Zinc
Operator…………………………Metalicity

#10 Admiral Bay

The Admiral Bay zinc deposit in Western Australia was once slated to generate $4.9bn over a 10-year mine-life, but former owner Kagara collapsed in 2012, thanks to debt, flooding at its operations in Queensland and a strong Australian dollar.

Admiral Bay is a meaty asset: it has a 72m tonne zinc resource grading 6.7 per cent. ASX-listed Metalicity Limited bought the deposit off administrators earlier this year and Denver-based private equity group, Resource Capital, quickly moved to back the new owners, paying $5m for a 1 per cent royalty in June.

Resource Capital also paid $10m for a 1.2 per cent royalty over Vimy Resources' Mulga Rock uranium deposit in Western Australia this week and holds a 2 per cent royalty over the Drakelands tin mine in Devon, due to enter production this month. London-listed Anglo Pacific has likewise eyed a royalty over Drakelands, but rather than sell the asset, Resource Capital is increasingly showing signs of harbouring royalty ambitions of its own.

 

 

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