Takeover target Metallica Minerals has suspended the majority of the planned project development works at its Cape Flattery silica project, in Queensland, citing the unsolicited, offmarket takeover offer by Diatreme Resources.
The company said that it had engaged with the Office of the Coordinator-General on the draft terms of reference (ToR) for the environmental-impact statement (EIS), which would be released for public comment in the near future.
However, because of the takeover offer, studies that did not require receipt of the ToR had been placed on hold.
In addition to the EIS process, Metallica has put on hold the mediation process under the National Native Title Tribunal with the Dingaal and Nguuruumungo clans.
Diatreme in February launched a takeover for Metallica to combine their silica sand assets in the Far North Queensland, creating a larger resource base to serve the global solar photovoltaic industry.
An updated definitive feasibility study on the Cape Flattery project, released in late 2023, detailed project plans for a three-million-tonne-a-year operation.
Cape Flattery has ore reserves of 47-million tonnes, grading 99.18% silica, which will be processed over a 15-year life-of-mine.