Pure Resources (ASX:PR1) is establishing a strategic alliance with Australian industrial company SSH Group (ASX:SSH) to expedite the development of the Reedy Creek Garnet Project in Western Australia.
Under the non-binding heads of agreement, both companies will work collaboratively on project development activities including initial project engagement (IPE), negotiations for life-of-mine operations, and scope of IPE works.
As part of the initial project engagement, SSH will provide internal resources to support developing a final investment decision (FID) for the project. Pure Resources says this process will follow an IPE contract framework.
Upon completing the FID, both companies will enter an exclusive negotiation period to establish terms for a life-of-mine, whole-of-site alliance-style operations contract.
SSH will then lead site operations to accelerate studies, as well as identify and assess early revenue opportunities. SSH will also conduct mining scenario planning to leverage the advantageous outcropping nature of the garnet deposit.
Pure Resources Executive Chairman Patrick Glovac says the alliance represents a step forward in enhancing the operational and execution capacity.
“Building this capability through partnership will accelerate the development of the Reedy Creek Garnet Project and position us strongly for long-term success,” Glovac says.
SSH Chief Executive Daniel Cowley-Cooper says having a strategic alliance for IPE and whole-of-site operations positions the company as a valuable execution partner.
The Reedy Creek Garnet Project sits adjacent to the Great Northern Highway, 280km from Wyndham Port. The project’s mining lease, valid until 2038, encompasses a garnet skarn strike that has been expanded from 1.1km to 3.3km.
Pure Resources is an eminent battery metal-focused company that holds a portfolio of projects prospective for nickel, copper, lithium, rare earths, and graphite.
SSH Group has a portfolio of industrial service businesses focused on service delivery to the Australian mining, civil, and construction industries.
Write to Aaliyah Rogan at Mining.com.au
Images: Pure Resources
