Kagara Limited - Completes Sale of its Nickel Assets For A$68 Million
14.03.2012 | ABN Newswire
16:50 AEST Mar 14, 2012 ABN Newswire (C) 2004-2012 Asia Business News PL. All Rights Reserved.Perth, Australia (ABN Newswire) - Further to the announcement on 5 March 2012, Kagara Limited (ASX:KZL) has now completed the sale of its Western Australia nickel assets.
Under the completed agreement, Western Areas has acquired 100% of Kagara's nickel subsidiary, Kagara Nickel Pty Ltd. Reconciliation of final stockpile inventory adjustments and costs between the two companies will be completed over the coming month.
The assets acquired by Western Areas include the operating Lounge Lizard nickel mine as well as the surrounding package of 300km2of exploration tenements.
As announced on 5 March 2012, the cash injection from the sale is planned to be used to strengthen KZL's balance sheet, support current activities in North Queensland and help underpin KZL's longer-term growth strategy.
About Kagara Limited:
Kagara Limited is an S&P ASX 200 Australian resources group and one of Australia's lower cost producers of zinc, copper, lead and nickel.
The Company's base metals operations centre on the Mt Garnet-Chillagoe region of north Queensland, with three underground mines, one open pit mine and three processing facilities and a substantial production profile targeting copper production of 23,000 tonnes in FY2011 and zinc production of 100,000 tonnes in FY2012.
Production is also underway at the Lounge Lizard Nickel Project in Western Australia at a targeted nickel ore production rate of 50,000 tonnes per annum.
In addition, Kagara holds an extensive portfolio of high quality development and exploration assets, including the world-class Admiral Bay zinc-lead-silver-barite deposit in Western Australia, capable of delivering long term growth for the Company's shareholders well into the future.
Contact:
Mark Hands
Company Secretary
Kagara Limited
T: +618-9481-1211
E: admin@kagara.com.au
http://www.kagara.com.au