Magnum and Midmetal eye pig iron partnership

Magnum Mining and Exploration (ASX:MGU) has struck a memorandum of understanding (MoU) with Saudi Arabia-based Middle East for Metallic and Industrial (Midmetal) over the Buena Iron Project in Nevada.

The MoU forms the basis for the two companies to negotiate a ‘strategic alliance’ for Magnum’s proposed magnetite mine and processing plant at the Buena project. Magnum will also work the Midmetal to pursue the development of HIsmelt facilities in the US.

While still in the early stages of negotiation, the potential partnership envisaged under the MoU will see Midmetal become a magnetite offtake customer as a partner in developing the Buena Vista mine and beneficiation plant.

Ultimately, Midmetal and Magum aim to work together to pursue the development of green pig iron production projects in North America, Saudi Arabia, and other regions, through HIsmelt technology.

Shares in Magnum Mining and Exploration have risen 6.45% to $0.033 as of 3:20pm AEST on Friday 1 September.

Speaking on the MoU with Midmetal, Magnum CEO Neil Goodman says: “This tie-up with Midmetal is an exciting development in the Buena Vista and West Virginia story.

Saudi Arabia’s diversification out of petroleum presents a compelling opportunity in established markets

Saudi Arabia’s diversification out of petroleum presents a compelling opportunity in established markets. Magnum looks forward to working with Midmetal to developing a mutually beneficial relationship.”

Midmetal is working to use the latest technologies to produce pig iron in Saudi Arabia under the country’s Nasaned Initiative, which prioritises tech that can help achieve the ‘Saudi Vision 2030’ plan.

HIsmelt technology is designed to deliver high-purity pig iron without the need for slow and expensive hydrogen reduction techniques. HIsmelt uses biochar, which is sourced from renewable biomass, as an iron reductant.

Magnum holds a conditional HIsmelt patent application licence from China-based Shandong Molong Petroleum Machinery and Shandong Province Metallurgical Engineering that allows Magnum to construct and operate HIsmelt plants.

Write to Joshua Smith at Mining.com.au

Images: Magnum Mining and Exploration
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Written By Joshua Smith
Joshua Smith has years of experience in the media sector, having worked as a markets reporter, features writer, and editor since completing a Communications and Journalism degree and a Creative Writing degree. Josh is an avid board game fan and a self-professed coffee snob.

RTG Mining shifts focus at Mabilo

RTG Mining (ASX:RTG) is officially moving from a legal and corporate focus to an operation focus for its Mabilo Project in the Eastern Luzon region of the Philippines. 

The $39.80 million market capitalisation company has held its first project development meeting with executives from the Villar Family’s TVI Resource Development (TVIRD). It follows a memorandum of understanding (MoU) between RTG and TVIRD earlier this year under which RTG owns a 40% interest in the Mabilo Project and TVIRD holds the remaining 60%.

As part of the meeting, the partner companies undertook a detailed review of operational plans for the project.

RTG says the operational plans for the project include focusing on the start-up of the potentially ‘highly profitable’ Direct Shipping phase. These latest discussions are considered a ‘significant’ step forward for RTG as the partners begin to shift the focus for the project from corporate to operational matters. 

The Mabilo Project has been on care and maintenance for over 2 years, and this initial meeting focused on near-term initiatives, including discussions on local issues. 

These issues include necessary social development and management programs and environmental protection and enhancement programs, together with reviewing tree clearing permits, alongside the port facility and the land acquisition program. 

Shares in RTG spiked 16.67% to close at $0.042 on Wednesday afternoon (30 August).

RTG Mining Chief Executive Officer (CEO) Justine Magee says: “This first project development meeting with TVIRD should be regarded as a key turning point for the company and marks a profound shift in focus as we move past legal and corporate matters to now focus on activities which move Mabilo firmly forward into the project development phase. 

This first project development meeting with TVIRD should be regarded as a key turning point for the company…”

RTG has engaged in good and extensive discussions with TVIRD’s executive team, which now includes the newly appointed technical executive, representing a clear focus on operational start-up as we work together to unlock the value of the high-grade Mabilo copper/gold project.”

The company plans to hold meetings every fortnight to work closely to advance the development plans towards a targeted operational start-up as soon as possible. 

RTG Mining is a dual-listed mining and exploration company focused on progressing its Mabilo Project. As of 30 June 2023, the company had $1 million cash at hand prior to completing a private placement raising $14 million, according to its latest quarterly report.

Write to Aaliyah Rogan at Mining.com.au       

Images: RTG Mining
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.

Polymetals enters MoU for Endeavor Mine Rehabilitation Bond replacement

Polymetals Resources (ASX:POL) and Ocean Partners UK have entered into a non-binding Memorandum of Understanding (MoU) to potentially replace the Endeavor Mine Environmental Rehabilitation Bond to the amount of $27.96 million. 

Following a positive Mine Restart Study (MRS), Ocean Partners has proposed to facilitate a Bond replacement by providing a surety to Polymetals for up to 4 years. 

The Bond replacement is the final condition for the completion of Polymetals’ Endeavor Mine acquisition, with full title of all assets transferred to Cobar Metals, Polymetals’ wholly owned subsidiary. 

This includes the mining leases, fully permitted underground mine, 1.2mtpa concentrate concentrator, rail, secure water, grid power, 42 houses plus 2 blocks of units in the Cobar township, and 1,100km-square of contiguous exploration tenements. 

The Bond replacement MoU follows a $15 million Concentrate Prepayment Facility provided by Ocean Partners to Polymetals. This included a $500,000 equity contribution to the June 2023 capital raising. 

Polymetals, which has a market capitalisation of $46.09 million, says its long-term relationship with Ocean Partners has now been extended through its assistance to work towards replacing the bond. 

Meanwhile, further to the $15 million Concentrate Prepayment Facility provided by Ocean Partners, Polymetals says it continues to advance discussions with various debt providers to ensure an Endeavor Mine Restart is well funded. 

Commenting on the replacement, Polymetals Resources Executive Chairman Dave Sproule says: “The support shown by Ocean Partners via the Prepayment Facility, equity participation and now assistance with the Environmental Bond replacement, is a testament to their confidence in the Polymetals team, the Endeavor Mine, and particularly their outlook for silver, zinc, and lead. 

“Our well-established partnership should not be underestimated, as it provides all key elements to give the Endeavor Mine its absolute best chance to be brought back online as a long-term and profitable silver, zinc, and lead producer”

Our well-established partnership should not be underestimated, as it provides all key elements to give the Endeavor Mine its absolute best chance to be brought back online as a long-term and profitable silver, zinc, and lead producer.”

Following a general meeting held on 12 May 2023, Polymetals acquired 100% of Cobar Metals via a share transaction. 

As a wholly owned subsidiary, Cobar retains the right to acquire the Endeavor Mine, including associated infrastructure and 1,100km-square of exploration tenements. 

However, the completion of the acquisition requires that Polymetals replaces the Bond by 30 April 2024. Polymetals’ key consideration in the deal structuring with Ocean Partners is to complete the MRS to Prefeasibility Study level.

Polymetals says the MRS is well advanced, and the company aims to announce the results in the early December quarter. Subject to a positive MRS result and Bond replacement, Polymetals expects that mine and mill refurbishment works would begin during the December quarter. 

On that basis, operational restarting would occur during H1 2024, with first concentrate shipments and cash flow targeting within 3 months of re-commissioning the concentrator. 

The Endeavor Mine is located in the Cobar Basin in central-west New South Wales, Australia. 

Polymetals Resources is an Australian mining and exploration company focused on precious and base metal resources. As of 30 June 2023, the company had $2.633 million cash and cash equivalents at hand, according to its latest quarterly report published on 19 July 2023.

Images: Polymetals Resources
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.