Macarthur Minerals Limited (TSX-V: MMS)
(ASX: MIO) (OTCQB: MMSDF) (the “Company” or “Macarthur”)
is pleased to update shareholders on an active fourth quarter 2020.
2020 Calendar Year Focus
The primary focus during 2020 included:
- Lake Giles Magnetite project in
Western Australia;
- Pilbara non-iron ore tenements
being explored for lithium, base metals and gold; and
- Reviewing previous studies that
outlined opportunity for the early exploitation of the hematite
direct shipping iron ore, also at Lake Giles.
2020 Fourth Quarter
Highlights
Key highlights during the fourth quarter of 2020
included progress on the following:
Feasibility Study related outcomes
- Filing of NI43-101 Technical
Resource Report for Lake Giles with a Measured mineral resource of
53.9 million tonnes, an Indicated mineral resource of 218.7 million
tonnes and a further 997.0 million tonnes of Inferred mineral
resource (refer news release dated 1 October 2020, here)
- Outlined RCR Mining Technologies
completed engineering design of the Helix Dumper unloading solution
at the Port of Esperance (refer news release dated 7 October 2020,
here)
- Appointment of study/mining
consultants to accelerate the study programme.
Non-iron ore tenements
- Repositioning the Company’s 100%
owned, 720km² gold, copper, zinc, manganese and lithium exploration
tenements in the Pilbara region of Western Australia.
- Repositioning the Company’s 100%
owned 210 lithium brine mining claims, covering an area of 7 square
miles (18 km²) located in Railroad Valley, in Nye County, Nevada,
USA. The 210 claims are located approximately 180 miles (300 km)
North of Las Vegas, Nevada, and 330 miles (531 km) South East of
Tesla’s new Gigafactory
- Completed the technical work on the
Pilbara tenements to support the repositioning of these assets
during 2021.
Corporate activities
- Conversion of all Note holders into
Macarthur equity effectively removing all debt within this business
(refer news release dated 10 September 2020, here)
- Capital raising via a private
placement in late October (refer news release dated 22 October
2020, here)
- Relisting of the Company on the
OTCQB in September 2020.
- Secured up to AUD$20 million
standby Equity Finance Facility to support the Company balance
sheet (refer news release dated 13 October 2020, here)
- Completed the Company’s first 12
months of trading on the Australian Stock Exchange.
Over the course of the year, 50 news releases
were issued, ensuring shareholders have and will continue to be
kept informed of the Company’s progress.
2021 Calendar Year Goals
Macarthur is well placed to deliver on its
stated 2021 goals:
- Completing the Feasibility Study
which includes securing a strategic partner for project
development;
- Concluding the route to market
contract to support export through the Esperance Port; and
- Advancing terms of financing the
project commencing 2023.
In addition to the Lake Giles project, the
Company will also focus on a series of complementary goals. These
will include:
- To take advantage of a commercial
early production opportunity for the hematite resource at Lake
Giles in light of current strong demand and pricing for iron
ore;
- To formalize strategic partnerships
for key development and infrastructure needed to commercialise the
Lake Giles Iron Project; and
- To reposition the Company’s 100%
owned, 720km² tenement package of lithium, gold, copper and
base metals in the Pilbara region of Australia, and its lithium
brine claims in the Nevada region of the USA.
All these stated goals will unlock unrealised
value in the Company to the benefit of Shareholders.
Iron Ore Market
Current iron ore demand is all about China, and
recent UBS economics forecast has China’s GDP growth rate at 8.2%
in 2021. UBS economics comments also pointed to this GDP growth
being driven by domestic and export-focused production, with
exports of finished products to grow at 11-12% over the 2021
year.
Iron ore pricing is variable and traditionally
the Chinese New Year Holidays coincide with annual steel mill
shutdown and lower demand for iron ore, but a December 2020 Platts
Iron Ore and Steel Outlook reported expectations amongst some
analysts that iron ore pricing may be sustained in Q1, 2021.
To view the accompanying Seaborne Iron
Ore Spot Price infographic please
visit:https://www.globenewswire.com/NewsRoom/AttachmentNg/11bd8477-3762-4516-8204-efe04cb586b4
To view the accompanying Share
Price infographic please
visit:https://www.globenewswire.com/NewsRoom/AttachmentNg/cddcbacb-fa92-4e61-9620-0f03c3f940f3
Andrew Bruton, Chief Executive Officer
of Macarthur Minerals commented:
“My first 12 months as the incoming CEO of
Macarthur will be very busy. The Company has an exciting agenda of
value-driving objectives for the 2021 calendar year. Chief amongst
that will be focusing on completing the Feasibility Study for our
magnetite operations. I anticipate that we can materially progress
commercial negotiations for infrastructure location and port access
early in 2021, allowing the Company to focus on finalising the
necessary metallurgy test work and process flow for magnetite
beneficiation, together with the engineering design works.
The Company’s General Manager Projects, Dr Dean
Carter, has been tasked with advancing the early DSO production
opportunity. Dr Carter’s key role in the Feasibility Study for
magnetite operations at Lake Giles will also focus on securing the
required environmental approvals over impact zones at Moonshine and
Moonshine North deposits, and along the haul road tenure areas.
Mr Richard Moon has been busy introducing the
Lake Giles opportunity to key Korean and Japanese steel mills, as
well as major international engineering groups and key equipment
suppliers. Mr Moon’s continued focus on progressing the Company’s
engagement with these groups will be important as we move through
funding requirements to support project capital requirements.
Finally, the Company’s Managing Director, Mr Joe
Phillips, will focus on project development financing and on
repositioning the Company’s Pilbara and Nevada asset portfolio’s,
ensuring that the Company can maximise benefits to shareholders and
enhancing Macarthur’s focus on its objective to transition into
iron ore production.
Macarthur has a very active year planned and I
will keep shareholders across key developments, including regular
updates on the continued progress of our Feasibility Study for Lake
Giles throughout the course of the year.”
Grant Share Based Compensation
Pursuant to the Company’s Share Compensation
Plans (“Plans”), the Board of Directors of the Company has granted
an aggregate of 2,282,500 restricted share units (“RSUs”) to
acquire common shares of the Company pursuant to the Plans, to
Directors, various Employees and Consultants of the Company. The
RSUs vest in the event that the closing share price of the
Company’s shares on the TSX Venture Exchange is greater than C$0.70
for 20 consecutive trading days. The RSUs are being issued under
the terms of the Company’s Share Compensation Plans which were
approved by shareholders at the Company’s Annual General Meeting on
30 October 2020.
On behalf of the Board of Directors, Mr
Cameron McCall, Chairman
For more information please contact:
Joe PhillipsManaging Director+61 7 3221
1796communications@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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