Oct 07, Colombo: Iluka Resources Limited, an Australian company has bought a Sri Lankan company that is in the business of sand mining.
Iluka Resources Limited in a released said that it had acquired all the issued share capital of a Sri Lankan company, PKD Resources (Pvt) Ltd which owns an exploration tenement located near the city of Puttalam in the North Western Province of Sri Lanka.
Under the agreement of acquisition of all the issued capital of PKD, Iluka Resources has been granted four exploration tenements within Sri Lanka.
Iluka Resources said a large mineral sand resource is contained within the tenements acquired through this acquisition.
The heavy mineral resource represents a 46 percent increase in in Iluka's total resource inventory at the end of 2012, the Australian company said.
"While subject to feasibility study work and all necessary Sri Lankan regulatory and Iluka approvals, it is expected that the deposit located on the tenements may deliver a capital-efficient, financially attractive investment opportunity for shareholders," the firm said.
Iluka said it intends to commence feasibility work shortly in relation to the potential development of the deposit and is progressing the appointment of a project development team, as well as continuing engagement with Sri Lankan officials to secure all necessary approvals.