Tartana Minerals has made significant strides towards boosting copper output by signing a key agreement to process ore at the Mungana facility, securing a $10 million financing package, and winning a government grant for exploration drilling.
- Signed Heads of Agreement with Mt Garnet Mineral Finance for Mungana processing venture
- Progressed $10 million financing facility combining leasing and potential offtake or royalty streams
- Awarded $275,000 Queensland government grant for Beefwood copper/gold drilling planned in July 2025
- Produced and shipped 203 tonnes of copper sulphate pentahydrate during wet season generating A$775,000 revenue
- Commissioned refurbishment review of Mungana processing plant and completed open pit mine planning
Strategic Partnership to Unlock Copper Production
Tartana Minerals Limited (ASX: TAT) has taken a decisive step towards becoming a leading copper producer in Far North Queensland by signing a binding Heads of Agreement (HOA) with Mt Garnet Mineral Finance Pty Ltd (MGMF). This partnership aims to mine copper ore from Tartana's open pit and process it through the Mungana processing plant, a facility with existing infrastructure but currently suspended. The venture will produce copper concentrate for sale to third-party smelters, marking a significant operational milestone for Tartana.
The HOA includes conditions precedent such as finalising a management agreement appointing Tartana to oversee operations, securing project financing, and obtaining necessary Queensland Government approvals, including lifting the suspension of Mungana's Environmental Authority. The Queensland Government has expressed receptiveness to supporting the plant's restart, which could accelerate Tartana's production timeline.
Financing and Operational Progress
Alongside the HOA, Tartana is advancing a $10 million financing facility structured through leasing arrangements and potential offtake or royalty streams. This financial backing is critical to fund the refurbishment of the Mungana plant and support mining operations. The company has also secured short-term unsecured cash advances totaling $250,000 post-quarter to manage immediate liquidity needs while preparing for a broader capital raising, likely via convertible notes offering 15% annual interest and conversion at $0.10 per share.
Operationally, Tartana commissioned MEC Mining to optimize the Tartana open pit mine plan, focusing initially on higher-grade mineralisation that can be trucked directly to Mungana. Concurrently, a specialist team led by Maxitool Mining Group's Andre Cuthbertson completed a two-week site visit to assess the Mungana plant's refurbishment requirements. This review prioritizes early critical repairs to enable a faster processing restart, with cost estimates expected within weeks.
Sustained Production Despite Weather Challenges
Despite the wet season and flooding that temporarily restricted access to the Tartana site, the company maintained copper sulphate pentahydrate production, shipping 203 tonnes during the quarter and generating revenue of approximately A$775,000. This contrasts with no wet season production last year, reflecting improved operational resilience. Full production and sales are anticipated to resume by early May as weather conditions improve.
Exploration and Growth Prospects
Tartana's exploration portfolio expanded significantly following the acquisition of Queensland Strategic Metals Pty Ltd, adding critical and strategic metal prospects. Exploration activity was limited during the wet season but is set to intensify in the coming quarter. Notably, the company was awarded a $275,000 Collaborative Exploration Initiative grant from the Queensland Government to drill an 800-meter diamond hole at the Beefwood copper/gold target in July 2025, targeting previously untested greenfield mineralisation beneath sedimentary cover.
Additional geophysical surveys and resource estimation work are underway at key projects including Cardross gold/copper and Ortona copper, leveraging advanced airborne magnetic and induced polarization data to refine target zones. These efforts underscore Tartana's commitment to expanding its resource base and underpinning future production growth.
Financial Position and Outlook
At quarter-end, Tartana held cash reserves of A$109,000, supplemented by unsecured financing facilities totaling $2.25 million, including convertible notes and cash advances from directors and investors. While the company reported a net cash outflow from operations, management remains confident in its ability to raise additional capital as needed. Payments to directors and related parties amounted to $169,000, reflecting remuneration and interest on financing facilities.
Looking ahead, Tartana's progress towards operationalising the Mungana plant, combined with ongoing exploration and financing initiatives, positions the company to enhance copper production and shareholder value. However, the timing of government approvals, successful plant refurbishment, and capital raising will be critical factors to monitor.
Bottom Line?
Tartana’s next moves on Mungana’s restart and capital raising will be pivotal for its copper production ambitions.
Questions in the middle?
- Will Tartana secure Queensland Government approvals and lift the Mungana plant suspension promptly?
- How will the $10 million financing facility be structured and what impact will it have on shareholder dilution?
- What results will the July 2025 Beefwood drilling campaign yield and how might it reshape Tartana’s resource base?