Diatreme is a Qld mineral sands company with a connected board (e.g. Wayne Swan is the Chairman) and an appetite for growth via acquisition (currently has an offer in place for MLM).

The silica sands, rutile, zircon and other minerals on the rare earth scale are likely to be harder to access globally in future years, so having Qld Govt recognising the importance of Cape Flannery and with a potentially combined DRX and MLM moving forward, this looks like a opportunity with good upside.

Some comments from the offer doc for MLM:

Diatreme’s Chairman Mr. Wayne Swan said: “Diatreme intends to put this Offer directly to Metallica shareholders on the basis that it represents a compelling opportunity for the shareholders of both Metallica and Diatreme. We are grateful for the early support shown for this Offer by Sibelco Asia Pacific, a major shareholder of both Metallica and Diatreme.

This proposed transaction is a logical step in ensuring the shareholders of both companies will see the benefits of a focussed silica development company optimising resources, capital expenditures, staffing, regional engagement and export solutions. This is expected to see us create value for the shareholders of both companies, as well as external stakeholders such as traditional owners, local business and the broader Cooktown and Hopevale communities.

The Queensland government has identified Cape Flattery as a critical minerals mining area and export hub of significance. Unlocking the potential for the region’s contribution to the continued decarbonisation efforts is paramount and at the forefront of all advanced economies as we plan a greener future for all generations. A combined Diatreme and Metallica is expected to see them contribute significantly to these initiatives”.

Diatreme’s Chief Executive Officer Mr. Neil McIntyre said: “The acquisition of Metallica aligns with Diatreme’s strategy of building a world class asset portfolio of high purity silica deposits of regional significance and scale. This is a regional consolidation of proximate, significant, high quality silica assets in the Cape Flattery region, providing the opportunity for sensible progressive project planning, permitting and implementation, whilst further broadening available export optionality within Cape Flattery regionally

Further, Diatreme has the financial capacity, technical expertise, industry partners and third-party stakeholder relationships required to advance the silica assets of the combined entity in the interest of all combined shareholders with the aim of bringing the projects into timely production.”