By Robb M. Stewart
MELBOURNE--Altona Mining Ltd. (AOH.AU) Monday said global miner
Xstrata PLC (XTA.LN) has decided not to exercise an option it held
to buy a 51% stake in a portion of its Roseby copper project in
Australia's eastern Queensland state.
Xstrata's copper division had been entitled to buy the stake in
certain parts of the project at a fair market value determined by
an independent valuer. Less than a month earlier Altona said it had
received notice from Xstrata Copper that it intended to exercise
its option.
"Now that the uncertainty of the Xstrata Copper option is
resolved, the company is able to move forward to realize value from
the project," Altona Managing Director Alistair Cowden said in a
statement to the Australian Securities Exchange. "Altona and its
advisors will now progress options for the partnering, financing
and development of the project."
Altona is working to develop a mining operation that could
produce 39,000 metric tons of copper and 17,000 troy ounces gold a
year.
Write to Robb M. Stewart at robb.stewart@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires