Battle brewing for FNQ sand dunes as Diatreme Resources makes bid for Metallica

A battle is brewing over the wealth locked up in the white sand dunes of Far North Queensland following Diatreme Resources’ surprise takeover tilt for rival Metallica.

The Cape Flattery Silica Sand Project, owned by Metallica Minerals

Is a bunfight brewing over the wealth locked up in the white sand dunes of Far North Queensland? Market watchers were surprised late last week when Brisbane-based silica miner Diatreme Resources, chaired by former treasurer Wayne Swan, made a takeover bid for adjacent rival Metallica Minerals.

The deal would create one of the world’s largest silica mines at Cape Flattery, north of Cairns, amid surging demand for the raw material used in solar panels, computers and phone screens. Metallica shareholders will receive 1.3319 fully paid ordinary shares in Diatreme under the all-scrip offer, a 37 per cent premium to its 30 day trading average.

But City Beat understands that deal may have to be substantially sweetened, given Metallica has put a lot of expensive ground work into progressing its project, including environmental and feasibility studies as well as having the best option for a jetty to get the stuff onto ships.

Diatreme CEO Neil McIntyre

Diatreme chief executive Neil McIntyre says the takeover makes sense and that a combined operation would have a bigger voice to government and stakeholders.

McIntyre says his company is working on an option to gain access to a jetty operated by Mitsubishi, which has run a huge silica mine next door since the 1960s.

Metallica has advised shareholders to take no action pending a formal response from the board. As the offer is all- scrip, Metallica says it will be analysing Diatreme’s assets and at the same time engage with other interested parties.

The global silica sand market is expected to grow from $US8bn in 2019 to $US20bn this year amid demand for high-quality glass needed in solar panels, computer screens, televisions and electric vehicles. Watch this space.

Sister act

Three Queensland entrepreneurs are being celebrated by a new Council of Small Business Organisations Australia (COSBOA) program helping female founders get themselves established. The enterprising journeys of Sally Branson, of the Sally Branson Consulting Group, Tanya Boots, of Inspirational Tea Co and Megan Pollock, of Second Scout, headline a collection of women profiled for the Enterprising ME’s Spotlight Series. Branson - a former Victorian state director of the National Party turned Gold Coast-based crisis communicator - speaks of her distaste for hustle culture as part of the series, arguing: “I’m not running my own business to hustle, I made my own business so I can do what I love.” Pollock, who designs and sells magnetic, visual aids that help kids keep their routines, lays out the difficult reality of running a small business, revealing she nearly closed down last year when she lost her factory overnight. That same day, she was named a Australia Post Local Business Hero and this week, she was awarded a Lord Mayor’s Women in Business Grant.

Enterprising ME was launched following research commissioned by COSBOA that found many women are too scared to start a business despite being keen, competent and full of life experience. “Queensland women are growing some impressive, innovative small businesses and we want to harness that,” Enterprising ME’s Miriam Rizvi said of the program.

Tanya Boots quit her corporate leadership job three years ago due to burnout and is now running a bespoke tea business on the Gold Coast.