Magnetite Mines (ASX:MGT) has signed a non-binding memorandum of understanding (MoU) with Pacific Partnerships, a subsidiary of engineering-led construction, mining, services, and public private partnerships (PPPs) firm CIMIC Group.
Magnetite Mines says the MoU is significant in the company’s vision to develop its 100% owned Razorback Iron Ore Project in South Australia’s Braemar Iron Ore Province. The MoU provides a framework for the company and Pacific Partnerships to explore opportunities for the development of the large-scale, long-life Razorback asset.
The MoU also establishes a foundation for Early Contractor Involvement (ECI) at the appropriate time in the project’s development sequence – that is, the current value engineering phase.
The MoU also enables collaboration between the parties on other possible commercial outcomes, including the potential for debt or equity-based project financing, joint venture partnering, procurement of equipment and other services.
Pacific Partnerships is an infrastructure developer that has been responsible for the delivery of 12 PPPs valued at more than $35 billion.
Magnetite Mines is focused on developing magnetite iron ore resources in the highly prospective Braemar iron region of South Australia.
Write to Adam Orlando at Mining.com.au
Images: Magnetite Mines
