PYX to Acquire World-Class Mineral Sands Deposit
Sydney, Jan 13, 2021 AEST (ABN Newswire) - PYX Resources Limited (
NSX:PYX) is pleased to announce that it has entered into a Share Purchase Agreement with the shareholders of Tisma Development (HK) Ltd.
(Tisma) to acquire 100% of its shares. The Transaction will increase the scale of the Company's activities through an excellent strategic addition to our resource base. The acquisition is a key milestone in the consolidation of the Indonesian Mineral Sands mining industry, transforming PYX's resource base into the 2nd largest zircon producing resource base in the world, thus, generating shareholder value through enhancing PYX's ability to service blue-chip customers around the world with high quality, premium zircon.
Tisma operates a world-class mineral sands asset consisting of a concession area of 1,500 hectares located in Central Kalimantan Province, Indonesia, with substantial JORC compliant inferred resource and includes, in addition to 4.5 million tons of contained zircon, the potential to extract titanium minerals (rutile and ilmenite).
The concession is fully-licensed for zircon exploration and premium grade zircon production and exportation. It has access to well-developed infrastructure; such as a paved road to the deposits and is in close proximity to Palangkaraya, the provincial Capital of Central Kalimantan.
The Transaction complements the strategy of PYX by adding an additional mine and resources in the same region as the Mandiri tenement. The Directors hold the conviction that the Transaction will drive value creation for existing and new shareholders as it:
i) adds substantially to the Company's Mineral Resource base, ranking PYX second globally in terms of JORC compliant zircon resources amongst mineral sands companies in production, after the market leader, Iluka Resources;
ii) enables increased extraction and production of zircon to supply fast growing demand around the globe during the post-Covid-19 economic recovery; and
iii) provides the potential for extraction and production synergies given the proximity of PYX's Mandiri deposit, thereby optimizing the Company's resources.
PYX's Chairman and Chief Executive Officer, Oliver Hasler, said: "The acquisition of Tisma will mark another key milestone for PYX's stated strategy to significantly expand our asset base and sends a clear message that we are moving forward on a high-value growth path. The Transaction will allow PYX to significantly grow our premium zircon business serving blue chip customers around the globe."
About Pyx Resources Limited
PYX Resources Limited (NSX:PYX) (LON:PYX) is a global producer of premium zircon listed on the National Stock Exchange of Australia and the London Stock Exchange. The Company's flagship asset is the Mandiri mineral sands deposit, located in the alluvium sediment rich region of Central Kalimantan, Indonesia. Boasting the world's 5th largest producing deposit of zircon, PYX is a large-scale, near-surface open pit operation in production since 2015 and with exploration to date validating the presence of additional Valuable Heavy Minerals such as rutile, ilmenite among others within its mineral sands.
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