Heavy Minerals in funding talks for Port Gregory construction

Heavy Minerals (ASX:HVY) is seeking potential funding for the construction of its Port Gregory Garnet Project in Western Australia from Dutch sovereign wealth fund Atradius and Export Finance Australia.  

In its Australasian Corrosion Association (ACA) Corrosion and Prevention Plan Perth 2023 presentation released today (14 November), the $5.18 million market capitalisation company said Port Gregory represented a ‘significant’ garnet deposit at a time of favourable market conditions.   

The company reports that Port Gregory is positioned to come online in 2026-2027. 

Heavy Minerals Chief Executive Officer (CEO) disclosed to this news service at this year’s International Mining and Resources Conference (IMARC) in Sydney last month that the project is expected to produce 150,000 tonnes of garnet per annum by 2027.

Moreover, the company highlights the scope for growth opportunities beyond its current forecast as environmental, social and corporate governance (ESG) regulations change. 

The company confirms the project demonstrates ‘strong’ overall financial metrics, especially the free cash flow (FCF) post-tax forecast to follow first production, which is poised to create opportunities for further investment and early shareholder earnings.    

These project fundamentals indicate a ‘strong’ potential for offtake opportunities over the next 18 months. 

Heavy Minerals adds that current Indian, Australian, and US supply and production challenges, in conjunction with geopolitical US-China tensions, bode well for Australian suppliers and add to garnet’s compound annual growth rate, which currently sits at greater than 7%. 

When speaking to Mining.com.au at the end of October at this year’s IMARC, Heavy Minerals Chief Executive Officer (CEO) Andrew Taplin highlighted the value garnet had to offer the market. 

“Garnet is the most superior blast medium that can be used for preparing metal surfaces before a coating is put on. It has been supplied out of the Geraldton area for over 40 years and we are working to start supplying that to the market in 2026/27.” 

“Garnet is the most superior blast medium that can be used for preparing metal surfaces before a coating is put on”

Heavy Minerals is an industrial minerals developer and explorer with projects adjacent to ‘world-class’ deposits in pro-mining jurisdictions. 

The company’s Port Gregory Project currently holds a JORC 2012 Mineral Resource Estimate (MRE) of 166 million tonnes (Mt) @ 4% total heavy minerals (THM), which comprises a measured MRE of 126Mt @ 3.8% THM, an indicated resource of 20Mt @ 6.5% THM, and in inferred MRE of 20Mt @ 2.9% THM. 

Heavy Minerals had $253,000 cash and cash equivalents at hand as of 30 September 2023, although the company says it is raising capital on an ongoing basis through a project royalty raising.

Write to Adam Drought at Mining.com.au

Images: Heavy Minerals
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.