Macarthur a Step Closer to DSO Export Pathway With Rail Deal
July 08 2021 - 8:00AM
Macarthur Minerals Limited (ASX: MIO)
(TSX-V: MMS) (OTCQB: MMSDF) (the
Company
or
Macarthur) is pleased to announce that it has
entered into a term sheet with rail haulage service provider
Pacific National, regarding the transport by rail of up to 400,000
tonnes per annum of iron ore between Kalgoorlie and Esperance. The
deal will support a potential direct shipment ore (DSO) export
pathway.
The Company ’s plans to pursue commencement of
mining, production and export of a DSO product at Ularring Lake
Giles Iron Project at the earliest available opportunity are being
advanced.
With suitable rolling stock anticipated to be
available from Q1 2022, the Company aims to complete the balance of
its transport solution as quickly as possible.
Highlights
- Macarthur has entered into a Term Sheet with Pacific National –
regarding the transport by rail of up to 400,000 tonnes per annum
of iron ore between Kalgoorlie and Esperance for up to 4
years.
- Innovative approach to rail capacity leverages off two existing
rail paths along the Kalgoorlie to Esperance rail line - placing
Macarthur in a unique position, as a new customer, to access that
part of the rail network.
- Completion of DSO mine planning work at Ularring is being
accelerated to allow Macarthur to target commencement of DSO mining
operations as soon as possible.
- Macarthur continues to explore additional options to maximise
transport and export pathway opportunities to take advantage of
current strong iron ore prices and deliver value for
shareholders.
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The Term Sheet with Pacific National provides
for an exclusive negotiation period within which the parties will
negotiate a rail haulage agreement, subject to the satisfaction of
certain conditions precedent (which include Macarthur securing
matching port access and materials handling arrangements on
commercially acceptable terms) and agreement of the terms and
conditions by both parties. Any such rail haulage agreement will be
for an initial term of 24 months with options to extend for up to a
further 2 years.
The potential deal will deliver an innovative
solution for access to above and below rail haulage capacity for
Macarthur by enabling the Company to leverage off existing rail
paths along the Kalgoorlie to Esperance rail line. This places
Macarthur in a unique position to access rail transport in the
current market.
A figure accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/8a984352-1e99-4c4b-9ff6-fcad39350d41
Paul Scurrah, Chief Executive Officer
and Managing Director of Pacific National commented:
“We are delighted to be progressing
discussions with Macarthur Minerals to commence direct shipment of
ore from their Lake Giles project for export out of Esperance.
The proposed service will utilise available
capacity on our existing services operating between Esperance and
Kalgoorlie and presents an opportunity to support a greenfield
mining operation and create capacity on the network without
requiring additional paths. We look forward to supporting Macarthur
Minerals in this initial phase of the Lake Giles project and
building a sustaining partnership for the future.”
Andrew Bruton, CEO of Macarthur Minerals
commented:
“At the top of the current strong iron ore
market, securing new export pathways for bulk iron ore products in
Western Australia remains challenging. Despite these challenges,
Macarthur has worked hard to achieve an innovative transport
solution in collaboration with the team at Pacific National -
placing us in a unique position to access the rail network to
Esperance.
The Company intends to continue to target
commencement of commercial DSO mining operations at Ularring, and
this deal with Pacific National will help lay the foundation for
Macarthur’s ambitions to commence iron ore exports at the earliest
available opportunity.
Macarthur is very pleased to be partnering with
Pacific National. We look forward to updating the market on further
developments shortly.”
On behalf of the Board of Directors, Mr Cameron McCall,
Chairman
For more information please contact: |
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Joe Phillips |
|
Managing Director |
|
+61 7 3221 1796 |
|
communications@macarthurminerals.com |
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|
|
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). The JORC
reporting tables and Competent Person statement for the magnetite
and hematite mineral resources have previously been disclosed in
ASX market announcements dated 12 August 2020 and 5 December 2019.
Macarthur has prominent (~721 square kilometre 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.
About Pacific NationalPacific
National is a leading provider of bulk and containerised freight in
Australia for rail transport of construction materials,
agricultural products, refrigerated goods, waste, steel, soft and
hard commodities including grain, coal and minerals. They have an
expansive network of trains, infrastructure and partnerships. With
access to terminals in every mainland capital city of Australia,
they provide safe, innovative and sustainable freight solutions to
a large and diverse customer base.
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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