ABx Group (ASX:ABX) has secured $5.4 million from Good Importing International to advance the Sunrise Bauxite Project in Queensland to acquire a 75% interest in the project.
Good Importing will also acquire options in the Taralga and Penrose sites in New South Wales.
The agreement is part of ABx’s strategy to fast-track the development of the company’s Sunrise Bauxite Project, with the potential for a further $4.8 million investment in the New South Wales-based projects.
Managing Director Dr Mark Cooksey in a statement said the opportunity in the global bauxite market is one the group plans to capture.
“I am delighted to have executed these agreements with GII to secure significant investment into the Sunrise project and potentially the Taralga and Penrose projects,” Cooksey said.
The Queensland-based Sunrise Bauxite Project, which has a resource of 37 million tonnes, is a key focus of the deal.
Good Importing’s 75% stake in the project will take place over two stages, with initial funding of $2.7 million to be used for finalising the project design and securing necessary approvals.
For the second stage of funding, another $2.7 million will be deployed for infrastructure and land acquisition costs, with production expected to follow soon after.
Under the terms of the agreement announced, GII has secured a nine-month exclusive option to acquire a 75% interest in ABx’s New South Wales bauxite projects in Taralga and Penrose for $4.8 million.
The Taralga deposit, with a resource of 38 million tonnes, is now being re-evaluated for its commercial viability due to positive changes in logistics at Port Kembla.
The Penrose discovery contains a higher-value refractory-grade bauxite used for heat containment.
Good Importing under the shareholders agreement in place will hold two out of three board seats on the ABx3 subsidiary and is not included in ABx Group’s projects in Tasmania, which produces cement and fertiliser-grade bauxite.
Write to Dan Petrie at Mining.com.au
Images: ABx Group
