Magnum Mining and Exploration (ASX:MGU) has retained Melbourne-based firm Cadmon Advisory to assist in locating and engaging a suitable partner for the development of biochar production facilities in Malaysia.
Magnum, which has a $22.5 million market capitalisation, says Cadmon will provide instructions to potential investments and strategic investors and assist Magnum with its strategy for engaging with existing and prospective institutional shareholders.
As part of the arrangement, Cadmon will offer access to its established key investor relationships in Australia and Asia.
Cadmon’s services will be utilised for an initial period of 6 months and will initially focus on engaging with Malaysian suppliers of waste biomass that can be sustainably converted into biochar.
Magnum notes any renewal is at its discretion, and Cadmon will be remunerated with a simple monthly retainer and the allocation of 2.5 million fully paid ordinary Magnum shares at a nominal price.
Further, a schedule of milestone payments in shares and options is in place on the completion of several milestones.
These milestones include the completion of a biomass supply agreement with Malaysian plantations or downstream suppliers/palm oil refineries by Magnum and the completion of a bankable feasibility study (BFS) undertaken with a Malaysian joint venture (JV) partner for a biochar production facility.
Other milestones include the first production or prepayment received for biochar by the company and the execution of a Memorandum of Understanding (MoU) with a suitable JV partner for the development of a pig iron production facility in Malaysia.
Maagnum reports that shares are to be issued and subscribed for by Cadmon or its nominee at a nominal value of $0.0001 per share.
Meanwhile, Magnum announces it remains focused on pursuing the development of its Buena Vista Iron Project with the aim of producing about 1 million tonnes (Mt) per year of ‘high-grade’ magnetite concentrate.
Magnum Mining and Exploration is a mineral explorer and project developer engaged in iron ore concentrate and green pig iron production.
Cadmon is based in Melbourne, Victoria, and provides capital market and business development services to its clients as one of the few institutional-grade corporate advisors specialising in concept and frontier technology companies on the ASX.
Write to Adam Drought at Mining.com.au
Images: Magnum Mining and Exploration
