/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
UNITED STATES SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
Symbol: TSX-V: MMS, OTCQX: MMSDF
BRISBANE,
Australia, Sept. 16,
2015 /CNW/ - Macarthur Minerals Limited (TSX-V:
MMS, OTCQX: MMSDF) (the "Company" or "Macarthur") is pleased to
announce that it will acquire the debt facilities of Macquarie Bank
Limited ("Bank") that are secured over the assets of Western Desert
Resources Limited's (receivers and managers appointed) (in
liquidation) ("WDR") Roper Bar Iron Ore Project (the "Project")
located in Australia through a
joint venture with the Tulshyan Group.
MACARTHUR TULSHYAN JOINT VENTURE
Macarthur, through its wholly owned subsidiary Macarthur
Minerals NT Pty Ltd, will enter into a joint venture agreement with
the Tulshyan Group, through its associated entity, New Finley
Assets Limited, to establish the Macarthur Tulshyan Joint Venture
(the "JV"). The JV is expected to be a contributing joint venture
such that the Tulshyan Group and Macarthur have a 51% and 49%
participating interest, respectively, in the JV.
Macarthur will be appointed as exclusive manager and operator of
the JV. The Tulshyan Group will be appointed exclusive operator for
shipping, sales and marketing under the JV.
TULSHYAN GROUP
The Tulshyan Group (Singapore),
which has been in business for 33 years, is established in three
businesses; ship owning, ship recycling and diversified real
estate. The Tulshyan Group operates a fleet of over 30 ships,
which consists of tankers, bulkers and off-shore vessels. Tulshyan
is one of the largest recyclers of ships in the world.
Tulshyan brings to the joint venture expertise in shipping,
sales and marketing, which will be integral to recommencement of
operations for the Project.
ACQUISITION OF DEBT FACILITIES
The JV has entered into an exclusive letter of agreement with
the Bank, the primary secured debt holder, to purchase the
Syndicated Project Facility Agreement between WDR Iron Ore Pty
Ltd ("WDRIO") as borrower and WDR as guarantor (the "Debt
Facilities") and all related security and collateral agreements,
over the assets of the Project (the "Transaction"). Currently
the balance of the debt outstanding under the Debt Facilities is
approximately A$78 million.
In accordance with the letter of agreement, the JV and the Bank
will negotiate the entering into of a purchase agreement, together
with other related documentation to affect the transfer of the Debt
Facilities and registration of the security interests from the Bank
to the JV. In connection with the Transaction, the JV is
required to replace environmental bonds for the Project with the
Northern Territory Minister for Mines and Energy for approximately
A$6.5 million. No finder's fees
are to be paid in connection with the Transaction.
Financial close of the Transaction is expected to be on or
before 31 October, 2015. Until
the date of financial close, the JV will contribute 50% of the care
and maintenance costs with respect to the Project, up to a maximum
of A$300,000. Financial close of the
Transaction is subject to satisfactory legal due diligence,
entering into certain formal agreements and the approval of both
the TSX Venture Exchange ("TSX-V") and the Australian Foreign
Investment Review Board. The Transaction constitutes a
"reviewable transaction" pursuant to the policies of the TSX-V, and
as such, the Transaction will be subject to review by the
TSX-V.
The intention of the JV is determine the best strategy to
recover the secured debt while the Project remains under care and
maintenance. It is expected that this could include initially
recommencing low cost, small scale project operations, with a
longer term view to returning the Project into full operation.
THE ROPER BAR IRON ORE PROJECT
The Project is a hematite iron ore mine that is located inland
from the Gulf of Carpentaria and approximately 760km south-east of
Darwin, the capital of the Northern Territory in Australia. The Project area covers more
than 1,861km2 including the adjacent Mountain Creek
tenements.
WDR reported that in excess of A$250
million has been invested in bringing the mine into
production and constructing the fully integrated 'pit-to-port'
logistics solution. Open cut mining operations commenced in
September 2013 and ship loading
commenced in December 2013 followed
by the first shipment in January
2014. Since commencement of operations, WDR reported in
June 2014 that the Project exported
approximately 765,000 tonnes of iron ore.
Schedule 1 sets out a historical estimate of the Mineral Reserve
and the Mineral Resource, which was reported to the Australian
Stock Exchange by WDR in the Roper Bar Ore Reserve Statement, dated
17 July 2014. For Macarthur's
purposes, these estimates for the Project are considered to be
historical estimates under National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI 43-101")
as they were prepared by WDR prior to Macarthur's involvement with
the Project. In addition, these historical estimates do not
conform to NI 43-101 for reporting purposes and use categories
other than those set out in NI 43-101.
There are no material differences between the definitions of
Measured, Indicated and Inferred Mineral Resources under NI 43-101
(as defined in the Canadian Institute of Mining, Metallurgy and
Petroleum) and the equivalent definitions in the Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore
Reserves ('the JORC Code'). Other than as reported by WDR's
news release on 17 July 2014, the key
assumptions, parameters, and methods used to prepare the historical
estimate are not known. There have not been any more recent
estimates or data available to the Company with respect to the
Project. A review of the geological information needs to be
conducted in order to verify or update the historical estimate.
A Qualified Person for the purposes of NI 43-101 has not done
sufficient work to classify the historical estimate as a current
Mineral Resource or Mineral Reserve and Macarthur is not treating
the historical estimate as a current mineral resource or mineral
reserve. As such, the historical estimates should not be relied
upon.
QUALIFIED PERSONS STATEMENT
Mr Ian S Cooper, B.Sc., A.R.S.M., F.G.S. FAusIMM, who is a
Fellow of the Australasian Institute of Mining and Metallurgy
(membership number 107348), has reviewed and approved the technical
information contained in this news release. Mr Cooper is the
Consulting Geologist and is an employee of Macarthur and is a
Qualified Person as defined by NI 43-101.
ABOUT MACARTHUR MINERALS LIMITED (TSX-V: MMS, OTCQX:
MMSDF)
Macarthur Minerals Limited is an Australian based resource
development company currently focused on projects located in the
Yilgarn iron ore district in Western Australia. Macarthur's
projects are located 110 km from rail infrastructure with a
direct connection to the iron ore exporting Port of Esperance,
Western Australia.
Macarthur has been actively:
- evaluating its core tenement portfolio and actively seeking a
joint venture partner to offset the holding costs of its
projects;
- pursuing alternative development scenarios; and
- identifying counter cyclical investments that complement
Macarthur's capabilities.
On behalf of the Board of Directors,
MACARTHUR MINERALS LIMITED
"Earl Evans"
Earl Evans, Chairman
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
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,
including whether the Transaction will be completed. 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
timely receipt of required approvals, the reliability of
information, including historical mineral resource or mineral
reserve estimates, 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 fluctuations in exchange rates and certain
commodity prices, uncertainties related to mineral title in the
Project, 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 ore,
uncertainty in successfully returning the Project into full
operation, the Company's ability to bring the Project out of
receivership and have the liquidation process cease with respect to
WDR 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.
Schedule 1
As reported by WDR in the Roper Bar Ore Reserve Statement, dated
17 July 2014 as released to
Australian Stock Exchange the Project contained Mineral Reserve of
14.4 million tonnes ("Mt") with a grade of 59% Fe and 10.3% silica
as follows:
Proved
|
Product
Tonnes
|
5.7Mt
|
Probable
|
Product
Tonnes
|
8.7Mt
|
TOTAL
|
Proved &
Probable
|
14.4 Mt
|
The Project has the following Mineral Resources as reported by
WDR in the Roper Bar Ore Reserve Statement, as of 17 July 2014:
WDR Mineral Resource at 30% Fe cut-off (inclusive of Ore
Reserves)
|
|
|
|
|
|
|
Deposit
|
Measured
|
Indicated
|
Inferred
|
Fe
|
SiO2
|
P
|
Al2O3
|
LOI
|
|
Classification
(Mt)
|
%
|
%
|
%
|
%
|
%
|
Area
D
|
|
|
90.7
|
37.2
|
31.5
|
0.008
|
3.20
|
9.6
|
D-North
|
|
|
116.5
|
40.3
|
26.3
|
0.002
|
2.20
|
11.0
|
E-South
|
|
75.8
|
|
38.7
|
29.9
|
0.005
|
2.62
|
9.9
|
E-South
|
|
|
17.5
|
36.1
|
30.8
|
0.003
|
2.35
|
12.4
|
E-East
|
3.8
|
|
|
45.5
|
23.9
|
0.006
|
2.00
|
7.5
|
E-East
|
|
37.5
|
|
41.6
|
26.5
|
0.004
|
2.10
|
9.0
|
E-East
|
|
|
47.7
|
39.8
|
27.2
|
0.004
|
2.18
|
10.0
|
Area
F
|
8.7
|
|
|
49.4
|
22.0
|
0.008
|
3.09
|
2.7
|
Area
F
|
|
17.7
|
|
48.0
|
23.5
|
0.005
|
2.80
|
3.2
|
Area
F
|
|
|
213.8
|
41.3
|
31.0
|
0.004
|
2.91
|
4.9
|
TOTAL
|
12.5
|
131.0
|
486.2
|
|
|
|
|
|
WDR Mineral Resource at 54% Fe cut-off (inclusive of Ore
Reserves)
|
|
|
|
|
|
|
Deposit
|
Measured
|
Indicated
|
Inferred
|
Fe
|
SiO2
|
P
|
Al2O3
|
LOI
|
|
Classification
(Mt)
|
%
|
%
|
%
|
%
|
%
|
D-North
|
|
|
0.7
|
55.0
|
10.5
|
0.001
|
0.67
|
8.2
|
E-South
|
|
2.6
|
|
55.1
|
16.8
|
0.004
|
0.99
|
2.8
|
E-East
|
0.8
|
|
|
57.6
|
13.0
|
0.005
|
1.02
|
3.1
|
E-East
|
|
5.3
|
|
57.0
|
12.7
|
0.003
|
1.04
|
3.5
|
E-East
|
|
|
3.7
|
55.3
|
14.2
|
0.003
|
1.35
|
4.1
|
Area
F
|
3.9
|
|
|
61.4
|
6.9
|
0.007
|
2.30
|
1.9
|
Area
F
|
|
7.0
|
|
60.6
|
8.4
|
0.005
|
2.02
|
1.8
|
Area
F
|
|
|
20.1
|
58.8
|
10.3
|
0.005
|
2.52
|
2.0
|
TOTAL
|
4.7
|
14.9
|
24.4
|
|
|
|
|
|
Note: Differences may occur due to rounding errors.
For Macarthur's purposes, these Mineral Resource and Mineral
Reserve estimates for the Project are considered to be historical
estimates under NI 43-101 as they were prepared by WDR prior to
Macarthur's involvement with the Project.
SOURCE Macarthur Minerals Limited