Macarthur’s Joint Venture Partner Fe Limited Acquires Advanced Iron Ore Project
August 21 2020 - 8:00AM
Macarthur Minerals Limited
(ASX: MIO)
(TSX-V: MMS) (the “Company” or “Macarthur”) Joint
Venture Partner, Fe Limited (“FEL”) has announced that it has
entered into a binding Heads of Agreement to acquire a 50% interest
in the Yarram Iron Ore Project in the Northern Territory.
The consideration is A$1.5m in cash and shares
with a further A$1.5m in cash and shares payable on achieving a
JORC indicated resource milestone. FEL is to cover certain
historical and future costs. FEL will operate the Joint
Venture and has a casting vote on the majority of key issues, with
approval of other matters not to be unreasonably withheld.
Outstanding historical drill intercepts
include:
- 108m @ 65.6% Fe, 2.3% SiO2, 1.8% Al2O3, 0.037% P from
18m in hole RJRC0119
- 65m @ 66.4% Fe, 2.0% SiO2, 1.5% Al2O3, 0.022% P from
13m in hole RJRC069 (hole finished in 65.9%
Fe)
- 35m @ 62.9% Fe, 4.3% SiO2, 1.6% Al2O3, 0.045% P from
23m in hole RJRC0106
Yarram is located just over 100km by road from
Darwin and is adjacent to the Browns Polymetallic project which is
presently on care and maintenance. FEL is purchasing its interest
from Gold Valley Iron and Manganese Pty Ltd which owns the iron ore
rights over the Yarram area, which represents a portion of a mining
licence (MLN 1163 and two exploration licences, ELR 125 and ELR
146). The Mining licence is located on Freehold land. The
underlying tenure is owned by an unrelated party, Northern
Territory Resources Pty Ltd, owner of the Browns Polymetallic
project.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3ab95169-6f8f-4fbd-8339-1e4b57344667
A copy of FEL’s full news release (including
supporting JORC Table 1) is available here.
Cameron McCall, President and Executive
Chairman of Macarthur Minerals commented:“We are excited
by the news that Fe Limited is acquiring a 50% interest in the
Yarram Iron Ore Project. With the current robust iron ore
market, FEL’s play for a mature iron ore asset like Yarram, which
is located close to existing port and mining infrastructure, is a
smart move. As Macarthur currently holds 26,666,667 Ordinary Shares
in FEL (and pursuant to its Joint Venture Agreement with FEL, can
earn a further $500,000 in cash or shares in FEL under the earn-in
arrangements), the successful delivery of the Yarram Project by FEL
and its joint venture partner, Gold Valley Iron and Manganese Pty
Ltd, has the potential to form part of the continuing success story
for Macarthur and its shareholders. We wish FEL and its
management team well in the pursuit of its objective to bring
Yarram into production.”
On behalf of the Board of Directors, Mr Cameron McCall,
Executive Chairman
For more information please contact:
Joe Phillips |
|
CEO &
Director |
|
+61 7
3221 1796 |
|
communications@macarthurminerals.com |
|
|
|
Investor
Relations – Australia |
Investor
Relations - Canada |
Advisir |
Investor
Cubed |
Sarah
Lenard, Partner |
Neil Simon,
CEO |
sarah.lenard@advisir.com.au |
+1 647 258
3310 |
|
info@investor3.ca |
Earn-in with Macarthur
Macarthur Lithium Pty Ltd (“MLi”), a wholly
owned subsidiary of Macarthur entered into an exclusive option
agreement (“Option Agreement”) with FEL as announced on May 14,
2019, to earn up to 75% in its Pilbara lithium and gold projects in
respect of eight tenements in the Pilbara.
About Fe Limited
FE Limited (ASX: FEL) is a listed mineral
exploration Company that holds or has rights or interests in
various projects and tenements prospective for battery metals,
copper, iron ore, gold and base metals located in Australia. The
Company is focused on the exploration of battery metal projects. In
March 2019, FEL entered into an agreement to acquire the
Pippingarra Lithium Project and the Marble Bar Lithium Project from
Mercury Resources Group Pty Ltd. These areas complement the
tenement portfolio of Macarthur Minerals, establishing a 1,242
square kilometer exploration footprint in the important Lithium and
Gold region of Western Australia.
Company profile
Macarthur is an iron ore development, gold and
lithium exploration company that is focused on bringing to
production its Western Australia iron ore projects. The Lake Giles
Iron Project mineral resources include the Ularring hematite
resource (approved for development) comprising Indicated resources
of 54.5 million tonnes at 47.2% Fe and Inferred resources of 26
million tonnes at 45.4% Fe; and the Lake Giles magnetite resource
of 53.9 million tonnes (Measured), 218.7 million tonnes (Indicated)
and 997 million tonnes (Inferred). Macarthur has prominent (~721
square kilometer tenement area) gold, lithium and copper
exploration interests in Pilbara region of Western Australia. In
addition, Macarthur has lithium brine Claims in the emerging
Railroad Valley region in Nevada, USA.
This news release is not for
distribution to United States services or for dissemination in the
United States
Caution Regarding Forward Looking
StatementsCertain 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.
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