US focused oil and gas producer Caspian Holdings is diversifying into mining in Spain by acquiring a business controlled by its own chairman Michael Masterman.
Iberian Resources Spain (IRS) is being acquired from Australian Iron Ore plc, which is 100% owned by Masterman, for $1m in shares and a €85,000 loan repayment. This will give Masterman a 60.9% stake in Caspian.
IRS owns 100% of the La Parrilla tailings deposit and an option to acquire the La Parrillia open pit tungsten mine. These are in south west Spain. The tungsten price has more than doubled in the past three years.
The tailings deposit contains 2.5m tons of tailings and production should commence within 18 months. It will take €1.5m of capital investment to take it into production and this investment should be paid back within one year.
The mine contains an estimated 36m tons of tungsten ore. There will be six months of exploration drilling before a decision on whether to take up the option. There are a series of staged option payments totalling €2.95m over three years.
Simple Investments has replaced HB Markets as broker.
At 0.3p a share, Caspian is valued at £1.41m.
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