Iron ore producer Fenix Resources (ASX:FEX) has completed the acquisition of Mount Gibson’s (ASX:MGX) Mid-West iron ore and port assets in Western Australia.
Fenix, which has a $196.59 million market capitalisation, has acquired the Shine Iron Ore Mine, 2 on-wharf bulk material storage sheds at Geraldton Port, 2 rail sidings at Ruvidini and Perenjori, and mining assets and obligations at the Extension Hill Iron Ore Mine.
Fenix reports the transaction consideration has been transferred to Mount Gibson, comprising $10 million in cash and 60 million fully paid ordinary FEX shares, alongside 25 million options.
Following the completion of the transaction, Mount Gibson holds about 8.6% of Fenix’s issued ordinary shares.
Commenting on the acquisition, Fenix Resources Chairman John Welborn says: “Acquiring Mount Gibson’s Mid-West iron ore and port assets is a game changer. We are extremely excited about the start of a new chapter for Fenix.
“Acquiring Mount Gibson’s Mid-West iron ore and port assets is a game changer“
This transformational event for Fenix will drive material economies of scale, provide flexibility to expand iron ore production and operate new projects concurrently.”
Fenix Resources is an ASX-listed iron ore company with assets in the midwest mining region of Western Australia. The company’s wholly owned flagship Iron Ridge Iron Ore Mine is a direct shipping ore deposit located about 360km northeast of Geraldton.
Write to Aaliyah Rogan at Mining.com.au
Images: Fenix Resources Ltd
