Macarthur Minerals Limited (TSX-V:
MMS) (ASX:
MIO) (OTCQB: MMSDF) (the
“Company” or “Macarthur”) is pleased to provide shareholders with
an update on key areas of progress that have been made during the
2020 calendar year, and an outline of its planned activities and
focus for 2021.
Feasibility Study
Work on the Feasibility Study for the Lake Giles
Iron Project (“Project”) continues to be advanced. During 2020,
your Company has placed specific focus on:
- defining a Measured Resource for
the Project (including the completion and filing of the required
supporting technical report); and
- advancing resolution of the key
transport infrastructure solutions necessary to successfully
deliver our high-grade magnetite product to market.
The many and complex elements of the Feasibility
Study are being addressed with appropriate rigour to ensure that
the Project can be optimised. The Company continues to target
conclusion of the Feasibility Study next year and is working with
its financial advisers (EAS Advisors in New York) to align the
conclusion of the study with the delivery of a diligently
structured capital funding solution aimed at preserving value and
minimising dilutionary impacts for shareholders.
Route to
market potential
remains unaffected by the
realities of broader regional iron ore
production
The Company’s Board and Management remain
confident that, (following completion of a successful Feasibility
Study for the Lake Giles Iron Project), the potential for the
Project to commence commercial mining operations by the current
target of Q1 2024 remains unaltered by broader regional iron ore
production utilising the existing rail and port network.
The reasons for this include the following:
- The Kalgoorlie to Esperance rail
network continues to remain under-utilised when compared with
historic run rates during the periods leading up to mid-2018. With
a run rate of just over 7 million tonnes of iron ore shipped along
the Kalgoorlie to Esperance rail network during the 2020 financial
year, and run rate marginally above 8 million tonnes during the
last four quarters to 30 September 2020, the rail network remains
materially under-utilised when compared with the rates being
achieved up to mid-2018 prior to Cliffs Natural Resources leaving
the Australian market. The Company’s Board and
Management consider that there is adequate potential capacity to
handle Macarthur’s initial 3.3mtpa of iron ore products from Lake
Giles, and this has been supported by the recent Proposal that the
Company received from Arc Infrastructure (“Arc”) for below rail
capacity (see 15 July 2020 ASX announcement here). The Arc Proposal
provides indicative track access pricing and a clear pathway to a
full Commercial Track Access Agreement which can support
Macarthur’s Feasibility Study.
- Iron ore exports through the Port
of Esperance during the 2020 financial year totalled 7,378,420
tonnes (Source: Southern Ports Authority Annual Report 2020). At
this level, capacity on the Berth 3 iron ore ship loader remains
materially underutilised when compared with the level of iron ore
exports that occurred prior to the region’s major producer, Cliffs
Natural Resources, leaving the Australian market in mid-2018. The
Company remains confident of achieving a solution that can
capitalise on the potential for available capacity through the Port
of Esperance to complete its route to market. Management is working
diligently with the Southern Ports Authority to examine options for
rail unloading, product storage and ship-loading solutions to
support all required production tonnages, and with the intention of
achieving a contracted pathway for critical infrastructure access
at the Port of Esperance in the short term.
2021 Objectives
Following closing of the recent A$6.25 million
private placement, and the separate ‘at call’ A$20 million
controlled placement facility, the Company is well funded to target
delivery of a number of other material objectives during the next
12 months. In addition to completing the Feasibility Study,
securing a strategic partner and concluding our route to market for
the Lake Giles Iron Project, 2021 will see the Company focusing on
a series of complementary objectives. These include:
- To commence commercial production
of the hematite resource at Ularring and facilitate an associated
export solution for that resource;
- To formalise strategic partnerships
for the key infrastructure needed to commercialise the Lake Giles
Iron Project; and
- To reposition the Company’s 100%
owned, 720 km2 of Lithium, Gold, Copper and base metal tenements in
the Pilbara region of Australia and its Lithium claims in the
Nevada region of the USA so that their value can be unlocked for
the benefit of shareholders.
Management remains primarily focused on
delivering the Lake Giles Iron Project and each of the above
objectives aligns directly with that purpose, while creating
potential to grow further value for shareholders in the short
term. Details on the Company’s imminent plans to
advance early hematite production at Ularring will be provided to
the market in the coming weeks and months.
Iron Ore Market
From a market perspective, the iron price has
remained very robust during 2020, driven by high steel production
and demand in China, and margins for high-grade, low impurity
magnetite concentrate are forecast to continue given the commitment
of many global economies to clean air, zero emissions targets by
2050/2060. This has the potential to drive long-term demand for
magnetite concentrate and for the cleaner fuel inputs to electric
arc furnace technology that can help to achieve a zero emissions
global steel industry.
Iron ore prices have continued to remain robust
and the margin for high grade +65%Fe fines continues to trend
well.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3af056a4-1e5b-4b46-ba1e-70c208c2ebaa
Share Price
Although the market has fluctuated over the last
month off the September and October highs, this is arguably
attributable to end of year selling in the North American market.
No Director or insider has sold down their position during this
period.
Over the last month, the Company’s securities
have traded in Canada (“TSXV”) between C$0.40 and C$0.50, and on
the Australian Stock Exchange (“ASX”) between A$0.44 and A$0.60.
The trading average volumes in this period have been 148,135 on the
TSXV and 198,561 on the ASX.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4a2169f3-c505-44c5-9090-27e0133e48fb
Update on Ancillary
Iron Projects
Treppo Iron Project
The Treppo Iron Project comprises one
application for an Exploration Licence that is located
approximately 30 kilometres West of the Lake Giles Iron Project.
Upon grant of this tenement the Company plans to commence
exploration including drilling of hematite targets that have been
mapped to date. This project is ideally situated in close proximity
to the Company’s Lake Giles Iron Project and provides long term
optionality in utilising regional infrastructure and allows for
fast-tracking of development.
Mt Jackson Iron Projects
The Mt Jackson Iron Project comprises
Exploration Licence E77/2542 located approximately 35 kilometres
West-northwest Treppo Iron Project. Tenement E77/2542 is located
adjacent to the Deception iron ore deposit that is actively mined
by Mineral Resources Ltd (“MRL”). The Company is currently
developing a program of field mapping and rock chip sampling to
understand the prospectivity for iron ore across these
projects.
Extension of Rights Offering Warrants
issued in December 2017
In September 2020, the TSX Venture Exchange
approved the extension of the expiry date of 7,928,183
post-consolidation common share purchase warrants that were issued
as part of the rights offering to shareholders, which was completed
by the Company in December 2017.
The expiry date has been extended from 15
December 2020 to 15 December 2021 with the Warrants exercisable for
common shares in Macarthur Minerals at a price of C$0.80 per
share.
Issue of Performance
Incentives
The Board has resolved that the recent expiry of
588,235 RSUs issued to Joe Phillips and Cameron McCall respectively
on 27 November 2017 will be reissued on the following terms:
- 500,000 RSUs to each Joe Phillips
and Cameron McCall;
- a vesting term of C$0.65 for 20
consecutive trading days; and
- expiring three years from the date
of grant.
Joe Phillips,
Managing Director of Macarthur Minerals
commented:
”Macarthur is in pole position to move ahead
with its Lake Giles Iron Project. The continued sub-optimal
utilisation of regional rail and port infrastructure and
Macarthur’s enviable portfolio of iron ore resources in the Yilgarn
region means that Macarthur continues to have a historic
opportunity not only to bring our high grade magnetite project
online, but to become a serious player in the Yilgarn region in the
foreseeable future.”
Andrew Bruton,
Chief Executive Officer of Macarthur
Minerals commented:
“Management continues to clinically focus on
laying all of the necessary building blocks to deliver the Lake
Giles Iron Project, and the Company’s appetite to independently
accelerate early production of DSO at Ularring has the potential to
add material benefit for shareholders and to assist the development
and funding of our main high grade magnetite project. The Company’s
Management is determined to accelerate outcomes in the coming
months. 2021 is set to be a milestone year for the Company”.
On behalf of the Board of Directors, Mr
Cameron McCall, Chairman
For more information please contact:
Joe
Phillips |
|
Managing 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 |
Company profileMacarthur 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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