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Anglesey Mining (LON:AYM) shares have surged after the Welsh mine developer revealed that it has signed a Project Development and Cooperation Agreement with QME Mining Technical Services for its Parys Mountain project. Under the agreement QME will, at no cost to Anglesey, carry out an agreed programme of design, engineering and optimisation studies relating to the future development of the company’s flagship copper, zinc, lead, gold and silver project.
Up until the end of June next year QME will carry out a detailed review of various development and mining alternatives for Parys Mountain, with the goal being to determine the optimum production plan. On completion and subject to financing, this is expected to form the basis for commissioning of a Preliminary Feasibility Study (PFS) to lead to an overall project financing package.
Under the deal Anglesey will award QME exclusive contracts for the development of the decline and underground mine development, including rehabilitation of the shaft, following a decision to proceed with the development of Parys Mountain. QME will also have the right and option, upon completion of a PFS, to undertake at QME’s cost and investment, the mine development component of the project to potentially earn a 30% undivided joint venture interest in Parys Mountain. As of 11:30 GMT the shares are up by 48% at 1.85p.