TIDMKDNC
RNS Number : 3531F
Cadence Minerals PLC
15 July 2021
Cadence Minerals Plc
("Cadence Minerals", "Cadence")
Macarthur Minerals (TSX-V: MMS, ASX: MIO) Signs Term Sheet With
Iron Ore Producer GWR for Mine-Gate Purchase of DSO.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note
that Macarthur Minerals (TSX-V: MMS) (ASX: MIO) (the "Company" or
"Macarthur") has announced a partnership with an Australian iron
ore producer GWR Group Limited (ASX: GWR) (GWR) under a deal which
will enable Macarthur to complete a mine-gate purchase from GWR of
up to 400,000 tonnes per annum of Direct Shipment Ore (DSO) product
from GWR's Wiluna West Iron Ore Project, located in Western
Australia.
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 8 July 2021 Macarthur also announced that it had entered into
a binding term sheet with Pacific National under which Macarthur
has secured up to 400,000 tonnes per annum of rail capacity along
the rail line between Kalgoorlie and Esperance, supporting a
potential DSO export pathway.
The combination of these arrangements could see Macarthur
undertaking transport of a GWR DSO product as early as January 2022
(and potentially sooner, subject to availability of suitable
rolling stock). This will provide potential for Macarthur to
generate early revenue flows between now and planned commencement
of commercial mining operations for DSO at Ularring.
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.
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 Perth-based consultants Orelogy Mine
Consulting to accelerate mine planning work for this operation. The
mine planning will be premised on targeting a low capital, fast
development scenario.
Initial mining operations will be focused on the Ularring
hematite resource, and specifically the deposits located at Snark
and Drabble Downs. These deposits are located within fully granted
mining leases, which have existing Environment Protection Authority
("EPA") approvals. They are also clear of Native Title issues.
The Company also recently made an application for a
Miscellaneous Licence covering an area of 74 hectares in the
Yilgarn region of Western Australia adjacent to the Snark hematite
deposit, to support Macarthur's non-process infrastructure for the
planned DSO campaign.
Gary Lyons, Non-executive Chairman of GWR Group Limited
commented: "On behalf of the entire GWR team, we are excited to be
developing upon our relationship with Macarthur Minerals Ltd,
having taken our flagship high-grade C4 Iron Ore deposit into
production earlier this year, with this agreement the future looks
very bright for Macarthur Minerals to enter the ranks in the near
term of ASX Iron Ore producer.
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."
Andrew Bruton, CEO of Macarthur Minerals commented: "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 State of Western Australia into
the future."
Link here for the full announcement:
https://finance.yahoo.com/news/macarthur-signs-term-sheet-iron-120000310.html
Cadence Minerals Holding in Macarthur
Cadence holds approximately 1% of the issued equity interest in
Macarthur, which is an Australian mining exploration company
focused primarily on iron ore, nickel, lithium and gold in Western
Australia. It also has a lithium project in Nevada, USA.
This news release is not for distribution to United States
Services or for Dissemination in the United States.
- Ends -
For further information: Cadence Minerals plc +44 (0) 7879 584153
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD
& Broker) +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Novum Securities Limited
(Joint Broker) +44 (0) 207 399 9400
Jon Belliss
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the
information contained in this announcement. Kiran holds a Bachelor
of Engineering (Industrial Geology) from the Camborne School of
Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
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Minerals Plc's future growth results of operations performance
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could cause actual results to differ materially from the results
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and other factors many of which are beyond the control of Cadence
Minerals Plc. Although any forward-looking statements contained in
this announcement are based upon what the Directors believe to be
reasonable assumptions. Cadence Minerals Plc cannot assure
investors that actual results will be consistent with such
forward-looking statements.
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