|Welcome to Consolidated Tin Mines Limited|
Consolidated Tin Mines (ASX: CSD) is an emerging tin explorer and developer. Its major project is the Mt Garnet Tin Project near Cairns in Northern Queensland, Australia. The project is located in an established mining area, close to infrastructure. Consolidated Tin’s objective is to develop the project into a major low cost, open pit tin mining operation. The Company’s strategy is to complete a Pre Feasibility Study on an initial JORC Resource base of 8Mt-10Mt of tin ore from its deposits, and to then join Snow Peak Mining Pty Ltd in a joint venture that will utilize Snow Peak Mining’s Mt Garnet mill to process about 1Mt of tin ore per annum to produce about 5,000 tonnes of tin in concentrate per annum.
The company recently announced that Snow Peak Mining Pty Ltd (SPM), has completed the acquisition of the Kagara Central Region Project at Mt Garnet, near Cairns in Northern Queensland.
SPM is a subsidiary of Hong Kong-based investment group Snow Peak International Investment Pty Ltd (SPI), which is Consolidated Tin’s major shareholder.
Consolidated Tin holds a 10% interest in the share capital of SPM on a ‘free carry’ basis.
Proposed two-stage CSD/SPM strategy
Under Stage 1, CSD will manage the Kagara Project on behalf of SPI as a separate entity. CSD will receive 10% (free carried) on any short term profit from all revenue from the Kagara Project. CSD will complete a PFS on its Mt Garnet Tin Project, with ore to be processed through a reconfigured Kagara Mt Garnet concentrator. Any short term tin processing from CSD areas will be processed by SPM on a cost plus margin basis.
In Stage 2, based on completion of a positive PFS, it is proposed that a 50/50 JV partnership will be formed between the two parties, whereby SPM provides the concentrator and CSD provides the Hard Rock tin project. The terms of the proposed JV partnership are still to be formalised in a new Heads of Agreement, the terms of which will be subject to shareholder approval at a General Meeting of CSD shareholders to be held in due course.
On completion of Stage 2, the SPM/CSD JV will install tin processing equipment as required in preparation for the commencement of production from CSD’s Mt Garnet Tin Project. Any project costs for installation of additional equipment required to treat the tin ore will be split 50/50. Production is currently scheduled to commence in 2014.