PERTH (miningweekly.com) – ASX-listed Peninsula Mines has struck an agreement with Korea’s Battery Minerals Resources to merge their respective South Korean tenements into one company that would be dubbed Korea Graphite Company.
On completion of the merger, Battery Mineral Resources will hold a 55% interest in the company, with Peninsula Mines holding the remaining 45%.
Korea Graphite Company will own a number of assets, including Gapyeong, Yongwon, Daewon, Euhna, Wolmeyong and Goseong, as well as Battery Minerals Resources’ assets; Geuman, Taehwa and new areas under application.
“This merger at project level represents an opportunity to develop an existing resource while continuing to explore new and exciting opportunities. Between Battery Minerals Resources and Peninsula Mines, we now have a foothold on the majority of the known graphite prospects in South Korea,” said Peninsula MD Richard Henning on Friday.
Following the merger, Korea Graphite Company would spend some A$1.5-million to fully develop the resources.
In Phase 1 of the spending period, Battery Minerals Resources would invest A$275 000 towards finalising a resource at the Geuman prospect, which currently hosts some 407 000 t of contained graphite, with Peninsula to invest A$225 000 to finalise work at the Gapyeong prospect, and to start a maiden drilling programme at Yongwon.
The Phase 2 investment would see Battery Minerals Resources invest a further A$1-million to advance all the projects, resulting in the Korean firm increasing its participating interest in the joint venture vehicle to 65%, with Peninsula’s interest reducing to 35%.
The Phase 3 investment, which would consist of a further A$1.5-million, would be raised to further advance the projects, and third parties would be invited to contribute.