Magnum Mining and Exploration (ASX:MGU) and Anglo American have entered into a nonbinding memorandum of understanding (MoU) to progress negotiations towards the offtake of the Buena Vista Iron Project in the US.
The $26.77 million market capitalisation company says the MoU covers all commercial iron ore products from the project, including direct shipping ore (DSO) and iron concentrate of blast furnace and direct reduction iron grades.
The MoU forms the basis for discussion to progress to a binding transaction.
While it is open ended, either party may terminate the MoU on a no cause and without prejudice basis. The MoU does not include any details about possible terms of any future agreements and all terms are subject to negotiations between the parties.
up to 100% of the iron ore production capacity from the Buena Vista Project will be negotiated through a binding transaction
Magnum adds that up to 100% of the iron ore production capacity from the Buena Vista Project will be negotiated through a binding transaction.
The company is currently pursuing options that seek to bring the project on line in the shortest and most economical way.
In addition, Magnum’s share price had increased 5.4% at $0.039 as of 12pm today (8 September).
Anglo American is a global mining company, with a portfolio of ‘competitive, world-class’ operations and a broad range of future development options.
Magnum Mining and Exploration is an ASX-listed company, particularly focused on the Buena Vista Magnetite and HIsmelt Green Pig Iron Project, located in Nevada, US.
Write to Aaliyah Rogan at Mining.com.au
Images: Magnum Mining and Exploration
