NQ Minerals PLC will secure 100% of all the mining and exploration rights to the main 1,695-hectare Hellyer mining lease as Bass Metals Ltd. agreed to surrender its sublease agreement over underground base metals rights at the Hellyer gold mine in Tasmania, Australia.
The company also acquired 100% rights to the 46-square-kilometer Mount Block permit, which surrounds the mining lease.
As part of the deal, NQ's operating entities associated with its Tasmanian operations will pay A$15,000 per month to Bass Metals for two years and provide local minor logistics support to Bass for their continuing obligations with nearby tenements.
NQ purchased Hellyer in May 2017 and restarted operations at the mine a year ago with a major mine tailings retreatment operation and a stated mine life of over 10 years.
The company will evaluate the potential for reopening underground mining operations on the base metals deposits already identified at Hellyer, providing potential to extend its operational life beyond the current 10-year plan, it said Jan. 7.
The acquisition will increase NQ's JORC 2004-compliant resources by 1.2 million tonnes at 8.6% zinc, 4.9% lead, 96 g/t silver and 1.66 g/t gold.