AFTER almost five years Western Australia’s Kagara Zinc has completed the purchase of the Admiral Bay zinc-lead deposit, located 140 kilometres south of Broome.
Kagara purchased the deposit from Rio Tinto for 2.5 million shares (worth around $2.3 million at the time of the announcement).
The shares have been allocated to a wholly-owned subsidiary of Rio Tinto, Riomin Australia Gold Pty.
With the purchase of Admiral Bay also comes a significant amount of mining and exploration data.
Kagara says Admiral Bay is a major undeveloped zinc deposit that represents a strategic acquisition for exploitation in the longer term.
An option on the deposit has been held by Kagara since it listed on the ASX in 1999 and a scoping study of the project has already been completed.
Kagara said Admiral Bay came with significant mining challenges because of its depth and location.There is also the potential to construct a smelter.
