Magnum Mining and Exploration (ASX:MGU) has entered into a Memorandum of Understanding (MoU) with Mitsubishi Corporation (TYO:8058) for the offtake of product from its Buena Vista Green Project in Nevada, US.
The company reports the MoU covers all products from the project, including Direct Shipping Ore (DSO), iron concentrate, HIsmelt-produced pig iron and slag, all steel plant wastes, and excess biochar.
Magnum says the MoU forms the basis for ‘good-faith’ discussions to lead to a definitive agreement. The MoU will remain in force for a period of 3 years, plus any mutually agreed extensions.
The company’s share price rose 47% as of 2pm AEST.
Commenting on the MoU, Magnum Mining and Exploration Chief Executive Officer (CEO) Neil Goodman says: “This MoU gives the Buena Vista Green Iron Project a sound basis for moving forward to a Feasibility Study.
“This MoU gives the Buena Vista Green Iron Project a sound basis for moving forward to a Feasibility Study”
The Ferrous Raw Materials Division of Mitsubishi is an internationally recognised and respected commodity trading team. Magnum welcomes this important strategic alliance and the surety it can bring to the project’s development.”
Additionally, the company says it is currently pursuing options to bring the project online in the shortest and most economical way.
Magnum Mining and Exploration is an Australian-based company, focused on engaging in iron ore concentrate and green pig iron production. The company’s main focus is the Buena Vista Magnetite and HIsmelt Green Pig Iron Project, which are located in Nevada, U.S.
Images: Magnum Mining and Exploration Ltd
