Think this is it:
Western Metals
JUNIORS with plenty of cash are a rare breed. Western Metals is part of the breed, with about $20 million in cash.
As covered by Garimpeiro last year, WMT had planned to pick up the historic Parys Mountain base metals project in North Wales while continuing to tickle along its uranium interests.
But land title issues and some other frustrations had WMT pull out of the Parys Mountain deal just as the GFC was working up a head of steam back in October.
That left WMT free to chase down a new opportunity.
WMT has found such a deal. For an all-up cost of $6.25 million in staged payments, WMT is to buy Sub-Sahara Resources' (SBS) gold projects in Tanzania. In the SBS deal, WMT has put its foot on the 4.5 million ounce Tusker gold deposit, a joint venture with Barrick.
SBS, and now WMT, can increase its stake in Tusker to 68 per cent by completing a positive bankable feasibility study into its development. It is only upon commercial production starting that WMT would have to pay the biggest chunk ($5 million) of its instalments deal with SBS. So WMT is picking up some serious ounces of gold at a low price, mainly because of the cash squeeze being felt by SBS, which will now focus on its Koka gold project in Eritrea.
WMT closed at 3.8¢ a share on Friday, not all that far off its cash backing.
WMT
western metals limited
