ABx Group (ASX:ABX) has received $2.7 million, as part of a stage one funding package from Good Importing International (GII), which will be used to develop the Sunrise Bauxite Project in Queensland.
GII will now earn a 70% interest in the Sunrise Project.
The first round of funding will be deployed to finalise the project design for an initial extraction of bauxite from the Binjour mine, exported via Bundaberg Port.
ABx says the key milestones include securing approvals, land access agreements and permits to extract at least 800,000 tonnes of direct shipping ore bauxite, as well as finalising a mine plan and port infrastructure design.
Stage one is expected to take 12 to 24 months to complete.
Under stage two, GII will invest a further $2.7 million by way of a share subscription to increase its ownership in Sunrise to 75%.
Stage two funding will be used to pay all land acquisition and lease costs, as well as a security deposit and construct infrastructure. The program is expected to take three months.
CEO Mark Cooksey says the investment provides the resources, technical skills, and commitment needed to advance towards production.
“With strong demand and tight global supply, we are confident this partnership places the project in an excellent position to succeed,” Cooksey says.
Both companies have jointly developed an updated project concept to use common user infrastructure established by Gladstone Ports Corporation at the Bundaberg Port.
As a result, time has been reduced to begin production and capital cost compared to earlier project concepts.
The Sunrise Project consists of a resource of 37 million tonnes of gibbsite-type metallurgical bauxite and port operations at Bundaberg Port.
ABx Group is an Australian resources company focused on heavy rare earths, clean fluorine chemicals and bauxite.
Write to Aaliyah Rogan at Mining.com.au
Images: ABx Group
