Finders Resources Limited (FND) shares climbed over 9% Monday by mid-afternoon following the company’s announcement that it had entered into an agreement covering the commercial terms of an option to acquire Straits Resources Limited’s (SRL) Whim Creek SX-EW plant for over $5 million. The agreement gives Finders the right to purchase the plant and associated equipment at any time during the period from 1 October 2009 to 31 December 2009.

The company said the acquisition is payable in Finders fully paid ordinary shares, while Straits would also be issued 724,638 fully paid Finders ordinary shares as the option fee for the agreement.

Finders said the plant has a capacity of approximately 18,000 tonnes of copper cathode per year.

Director of development Rob Thomson said the planned acquisition was a major milestone in the development of the Wetar Copper Project.

“The purchase of a proven operational SX-EW plant reduces much of the capital cost uncertainty and lead time uncertainty associated with building a new plant,” Mr Thomson said.

“It is anticipated that the acquisition of the SX-EW plant will significantly reduce the overall capital cost of the project and the quantum of this benefit will be determined as part of finalising the feasibility study.”

At 1446 AEST, Finders shares were up 3.5c to 36.5c, while Straits shares climbed 4.5c to $1.735.