Highlights
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Term Sheet for Mine-Gate DSO Purchase from GWR
A binding term sheet signed between the parties paves the way for Macarthur to purchase up to 400,000 tonnes per annum of DSO lump and fines products from GWR at the mine gate for an initial period of 2 years, with the ability to extend for up to a further 2 years.
The sale price for GWR’s DSO will reflect an equitable split of the realised sale price on an FOB basis at the ship rail, having regard to Macarthur’s costs to transport the product, which will be disclosed on an open book basis between the parties. The term sheet is subject to the parties entering into a definitive agreement following completion of the balance of the route to market arrangements by Macarthur on a basis that is commercially acceptable to both parties.
On
The combination of these arrangements could see Macarthur undertaking transport of a GWR DSO product as early as
The characteristics of the GWR product may also enable Macarthur to create a physical or virtual DSO blend product with Ularring DSO that achieves improved pricing going forward. Macarthur’s iron ore at Ularring is contracted for sale to Glencore under an existing Offtake agreement entered into in 2019 (See link to TSXV announcement here).
Figure 1 accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c0af4fd7-0aba-4f92-8846-96caab792b67
Ularring DSO Update
Macarthur is continuing to progress planning work for its ’Snark’ deposit at Ularring, with the intention of commencing commercial DSO mining operations at the earliest available opportunity. Given the current strength of the global iron ore market, the Company is targeting development of a simple DSO mining operation utilising mobile crushing and screening equipment.
Macarthur has appointed
Initial mining operations will be focused on the Ularring hematite resource, and specifically the deposits located at Snark and Drabble Downs (shown in the map in Figure 2 below). These deposits are located within fully granted mining leases, which have existing
Figure 2 accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b8061992-1470-4a4c-8d48-f68697f26327
The Company also recently made an application for a Miscellaneous Licence covering an area of 74 hectares in the Yilgarn region of
The application area and planned layout of the non-process infrastructure is shown in Figure 3 below.
Figure 3 accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/eda536e7-92b9-42c1-8528-4a2405669fe2
“On behalf of the entire GWR team, we are excited to be developing upon our relationship with
The opportunity to enter into a mine-gate sale with Macarthur Minerals provides an opportunity for GWR to increase its export tonnage over and above its planned tonnage without impacting upon its current operations, whilst providing Macarthur Minerals with the opportunity to kick-start its Hematite mining operations at Ularring.”
“Macarthur and GWR have enjoyed a very collaborative relationship over the last couple of years, and both companies understand the importance of co-operating to achieve our respective objectives in the region.
The deal has the potential to enable GWR to realise value for its product by providing additional export capacity. From Macarthur’s perspective, GWR’s offer to enter into a mine-gate sale arrangement can facilitate early revenue flows for Macarthur between now and commencement of commercial mining operations for DSO at Ularring whilst also providing the potential for Macarthur to create a physical or virtual DSO blend product that achieves improved pricing for its Ularring DSO following commencement of planned commercial mining operations there.
The deal with GWR provides opportunities that can benefit both companies, and Macarthur is grateful to GWR for the opportunity to partner with it. We look forward to a mutually beneficial collaboration which we hope will develop into a broader co-operation that can help realise the untapped economic potential of the Yilgarn region and deliver sustainable jobs and economic benefits for the region and for the
On behalf of the Board of Directors, Mr
For more information please contact: | |
Managing Director +61 7 3221 1796 communications@macarthurminerals.com | |
Investor Relations – Advisir sarah.lenard@advisir.com.au | Investor Relations - Investor Cubed +1 647 258 3310 info@investor3.ca |
Company profile
Macarthur is an iron ore development, gold and lithium exploration company that is focused on bringing to production its
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Caution Regarding Forward Looking Statements
Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, “forward-looking statements”) within the meaning of applicable securities laws. All statements herein, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, including but not limited to statements regarding expected completion of the Feasibility Study; conversion of Mineral Resources to Mineral Reserves or the eventual mining of the Project, are forward-looking statements. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include but are not limited to: unforeseen technology changes that results in a reduction in iron or magnetite demand or substitution by other metals or materials; the discovery of new large low cost deposits of iron magnetite; the general level of global economic activity; failure to complete the FS; inability to demonstrate economic viability of Mineral Resources; and failure to obtain mining approvals. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
Figure 1
GWR’s C4 deposit operations at Wiluna West in Western Australia . (Image courtesy of GWR)
Figure 2
Macarthur’s Snark and Drabble Downs deposits at Ularring, Lake Giles in Western Australia
Figure 3
Application area adjacent to Snark deposit at Ularring, Lake Giles, in Western Australia showing planned layout of facilities
2021 GlobeNewswire, Inc., source