A Canadian company is bringing what could be the country’s biggest silver and zinc mine to the Australian stock market with a $100 million float out of Perth.
With its backers having already spent $US150 million ($229m) on the Kudz Ze Kayah polymetallic deposit in Canada’s remote Yukon, BMC Minerals is raising cash via an ASX initial public offer at between $1.90 and $2.39 a share to advance the project to a development decision.
“KZK is the best polymetallic project I have seen in more than 25 years working in the resource sector,” BMC chief executive Michael McClelland said.
“It has the potential to be a globally significant project across all of its commodities and still offers considerable exploration upside within our 100 per cent-owned mineral tenure,” he said.
KZK would produce silver/gold, copper and zinc concentrates from an initial open-cut mine developed at an estimated cost of $US492m ($753m).
The first five years of production is secured by offtake agreements.
BMC, which has a registered officed in Perth, is chaired by Steven Michael, a former investment banker whose current and past ASX directorships included Predictive Discovery, Marvel Gold, Deep Yellow and Red Hawk Mining.
More to come.
