Diatreme soars 150pc on zircon partnership with Chinese heavyweight
Diatreme Resources surged 150 per cent on Thursday after the explorer signed up with a Chinese mining services firm to help advance its Cyclone zircon project.
Diatreme’s (ASX:DRX) shares hit 3.5c by mid-afternoon — its highest point in years — before cooling to 2.9c.
More than 18.5 million shares changed hands.
Diatreme — now valued at $14 million — had just $325,000 in the kitty at the end of September.
China ENFI Engineering will use its network within China’s state-owned enterprise and banking sectors to help secure investors, supply deals and funding.
ENFI is backed by one of China’s largest state-owned enterprises, Metallurgical Corporation of China — part of Beijing-headquartered China Minmetals Group, which has 1.6 trillion Chinese yuan ($311.8 billion) worth of assets and is ranked 120 in the Fortune Global 500.
The company has also been tasked with completing the definitive feasibility study for the Cyclone project in Western Australia.
Zircon is used in engines, electronics, spacecraft and the ceramics industry.
“The agreements with ENFI represent the final push forward for our Cyclone project, with the potential for first production by the end of the decade,” chief Neil McIntyre told investors.