Australian miner Heemskirk inks deal to sell Canada plant in C$12M deal

January 21
4:17 AM 2014

Australia-listed mining firm Heemskirk Consolidated has entered an deal with Marquis Alliance Energy Group to sell its mineral plant in Lethbridge, Canada. The sale is valued at C$12 million, according to Creamer Media's Mining Weekly.

On Tuesday, Heemskirk said the deal was part of its strategy to focus on developing and commissioning its C26-million plant in Moberly, the report said.

Mining Director Peter Bird said of the sale: "Heemskirk is at a key juncture with regard to developing its opportunities. We believe this transaction best generates solid shareholder value by further strengthening our cash reserves and allows us to focus on the development of the Moberly frac sand project, in British Columbia, at a time when that nation's energy sector is at the early stages of development of a forecast and sustainable expansion of its onshore oil and gas exploration and production profile."

The Lethbridge facility processes oilfields energy product materials. The said plant was purchased by Heemskirk in 2005. According to the Australian company, the consideration for the transaction would include C$8.44 million in cash as initial payment and C$2.56 million for the current inventory of the plant's bulked and bagged products, the repor detailed.

The sale is subject to approval of the board and shareholders, as well as regulatory approvals, Creamer Media's Mining Weekly reported.

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