Consolidated Tin Mines is taking over Auctus-owned operations in the Chillagoe region, west of Cairns, for up to $53.3 million.

The acquisition includes the Mungana processing plant, the inactive Mungana mine and the King Vol polymetallic mine, which produces about 360,000 tonnes of ore per annum .

Consolidated Tin Mines (CSD) says combining the Auctus assets with its existing operations in the region will deliver a well-diversfiied, high-grade, long-life polymetallic business.

“We are proud to announce the aquisition of Auctus and the Chillagoe project which we believe is transformational for CSD and our shareholders,” managing director Ralph de Lacey said.

“The transaction establishes CSD as a leading independent base metal producer with a proud Queensland heritage.”

Combining the two companies’ assets should unlock economies of scale and substantial synergy benefits, including better matching ore production, grade and blending with milling capacity, he said.

The consolidated CSD/Auctus business will include:

• The operating mines of Mount Garnet , Dry River South and King Vol underground as well as a ‘near-term restart opportunity’ (Mungana underground).
• The Mungana and Mount Garnet processing plants, with combined polymetallic processing capacity of more than 1.1Mtpa (plus a 500,000tpa supergene copper circuit).
• A range of development projects and exploration tenements within the region.

The acquisition price will include an upfront payment of about $37.3million and a deferred payment of up to 16 million.

It remains subject to CSD shareholder approval, which is expected to occur in March.

Consolidated Tin Mines proposes to change its name to Aurora Metals Limited as part of the business transformation.