Symbol: MMS: TSX, OTCQX: MMSDF
BRISBANE, Australia,
Nov. 27, 2014 /CNW/ - Macarthur
Minerals Limited (TSX: MMS, OTCQX: MMSDF) (the "Company" or
"Macarthur") is pleased to announce that it has entered into an
agreement with ATEC Rail Group Limited ("ARG") to review iron ore
acquisition opportunities in the Yilgarn region of Western Australia.
Macarthur's President, Chairman and CEO, Alan Phillips commented that, "From the ashes
of the Australian small iron ore producers, new opportunity is
emerging. Since 2010, Macarthur has been pursuing the development
of its Ularring Hematite project, but continued:
- delays in the Port of Esperance expansion;
- depressed equities in the junior mining space;
- constrained project financing options; and
- major collapse in the spot iron ore price during the course
of 2014,
has constrained delivery of Macarthur's project.
Acquisition opportunities are emerging as producing iron ore
assets are being re-priced on the prevailing spot iron ore price
and, for Macarthur, therein lies the opportunity.
As an example, within the Yilgarn region of Western Australia, it is reported that Cliffs
Natural Resources' Asia Pacific
operations (located 80 kilometers from Macarthur's Ularring
Hematite project) may be divested. Cliffs' Asia Pacific iron ore reserves are reportedly,
estimated to be exhausted by 2020.
Macarthur's Ularring Hematite Project may provide extension
of resources for operating projects and associated existing
infrastructure within the Yilgarn region.
The agreement with ARG is a good fit for Macarthur, as ARG
has the appetite and balance sheet to bid for
infrastructure/transport and export facility assets and make these
available to Macarthur. Macarthur would assume the mining and
resource extension through the Ularring Hematite Project and other
Yilgarn region iron ore resources."
ATEC Rail Group Limited
ARG is an Australian based below rail infrastructure company
specialising in delivering customised rail infrastructure
solutions. ARG has successfully invested in developing open
access bulk commodity freight infrastructure. Its focus is on
developing, owning, financing and operating the freight
infrastructure for bulk commodity clients. ARG is a
significant investor in the Surat Basin. ARG's largest
shareholder is the US based The Energy & Minerals Group
("EMG"), which is a specialised private investment firm with
regulatory assets under management of US$17.5 billion. EMG targets equity
investments in the energy and minerals sectors with talented and
experienced management teams to develop and own hard assets.
ARG welcomed EMG as its major shareholder in 2010. ARG has
offices in Brisbane, Sydney and Perth.
Memorandum of Understanding
Macarthur and ARG have entered into a Memorandum of
Understanding ("MOU") for the purpose of negotiating agreements
for:
- forming a consortium to assess, and if agreed, make a bid for
available assets in the Yilgarn region;
- carrying out of a transaction with a view to Macarthur
acquiring ownership and operating iron ore mining assets and ARG
acquiring ownership and operating and maintaining the
infrastructure assets associated with transporting iron ore from
the mine to port; and
- MMS and ARG working together to develop new infrastructure
assets in the Yilgarn region to connect iron ore projects within
the region and in particular connecting Macarthur's Ularring
Project to those assets.
Benefits for Macarthur
A successful acquisition opportunity may provide the following
benefits for Macarthur:
- Macarthur assuming mining operations and introducing a
funding/off-take partner to manage the product sales and commodity
risk;
- transforming Macarthur into an immediate producer of iron
ore;
- Macarthur has delineated an iron ore resource that has received
Western Australian Minster for Environment and Heritage approval
and approval under the Environmental and Biodiversity
Conservation Act 1999 (see News Release dated October 29, 2013), which may extend the useful
life of adjacent iron ore operations; processing capacity and rail
and port logistics infrastructure;
- Macarthur may be able to identify new iron ore resources within
the Yilgarn region, to further extend the life of mining and
logistics infrastructure;
- Macarthur avoids major capital cost and associated risk
through utilising existing logistics infrastructure; and
- Macarthur may be able to lower operating costs for its Ularring
Hematite Project through economies of scale benefits.
ABOUT MACARTHUR MINERALS LIMITED (TSX: MMS, OTCQX:
MMSDF)
Macarthur Minerals Limited is an Australian based resource
development company currently focused on developing its Ularring
Hematite Project, located in the Yilgarn iron ore district in
Western Australia. The Ularring Hematite Project is located
110 km from rail infrastructure with a direct connection to
the iron ore exporting Port of Esperance, Western Australia.
The Ularring Hematite Project has an indicated Mineral Resource
of 54.46 Mt at 47.2% Fe and an inferred Mineral Resource of 25.99
Mt at 45.4% Fe (press release dated June 14,
2012; NI43-101 Technical Report dated June 29, 2012). In addition, Macarthur's
Moonshine Magnetite Project has an inferred Mineral Resource of 1.3
Bt at 30.1% Fe (press release dated December
15, 2010; NI43-101 Technical Report dated March 25, 2011).
A Positive Preliminary Feasibility Study was released to the
market on the Ularring Hematite Project in August 2012, which included a probable Mineral
Reserve of 42.95 Mt at 47% Fe (press release dated August 16, 2012; Technical Report dated
September 27, 2012). A Positive
Preliminary Economic Assessment on the Moonshine Magnetite Project
was released in February 2011 (press
release dated February 7, 2011,
Technical Report dated March 25,
2011).
On behalf of the Board of Directors,
MACARTHUR MINERALS LIMITED
"Alan Phillips"
Alan Phillips, President, Chairman
& CEO
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
UNITED STATES SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES
Caution Regarding Forward Looking Statements
Certain
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. 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. With respect to forward-looking
statements contained in this press release, assumptions have been
made regarding, among other things, the reliability of information
prepared and/or published by third parties that are referenced in
this press release or was otherwise relied upon by the Company in
preparing this press release. 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 unforeseen technology changes that results in a
reduction in iron ore demand or substitution by other metals or
materials, the discovery of new large low cost deposits of iron and
the general level of global economic activity. 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.
SOURCE Macarthur Minerals Limited