THE "PATH TO PRODUCTION"
SUMMARY OF MACARTHUR'S LAST THREE PRESS RELEASES
MACARTHUR MINERALS (TSXV:MMS/ASX:MIO) On June 25
th Macarthur Minerals Limited (TSXV:MMS/ASX:MIO) (“Macarthur” or the “Company”) issued two press releases updating shareholders on the Company’s progress to date on the acquisition of tenure for its site infrastructure and its applications for tenure to construct a haul road and rail siding. On June 30, 2020 Macarthur also released their annual audited financial statements.
Macarthur is committed to taking the Lake Giles Iron Project (Project) to production. With over 1.3 billion tonnes of high grade magnetite iron ore and with drilling programs completed, the Company is now focused on finalizing the infrastructure pathway which is the next step in completing a feasibility study to support commercial production (Feasibility Study).
The Company’s focus for 2020 is advancing the contracting of its route to market (Road, Rail and Port); moving the resource needed for the first stage of production into a Measured category; advancing early hematite production scenarios and developing a financing plan with New York based EAS Advisors LLC, to support the Feasibility Study.
Once the Feasibility Study is completed, Macarthur will then follow up with several interested project finance groups. At this time, Macarthur is predominantly looking to finance the project under a secured debt structure that minimizes dilution to shareholders. In addition, strategic partners for the Project are being identified to facilitate the development of key long-term infrastructure, including haul road, rail unloading, port storage, water and energy requirements. The Company will leave open the option to consider wrapping a small equity component around the debt issuance.
Iron Ore prices have held up strongly this year as China’s steel industry demand continues to grow against a backdrop of significant supply challenges within many of the world’s major producers (specifically, in Brazil where flooding, dam issues and Covid have all contributed to lower production output and concerns over future production stability). There remains a robust and long-term demand for high grade and low impurity iron ore for the blast and arc furnace market.
Macarthur’s Iron Ore project presents an ideal opportunity for a major steel producer to secure a generational resource for their future production needs. The two recent June 25
th releases were focused on:
- Securing the 93 km road from the mine site to the rail line
- Completion of the acquisition of tenure rights which are necessary to build the processing plant and infrastructure needed to advance the Project into production.
The Annual financial statements Macarthur is well funded (~$4 million AU) and has made progress on several key elements of their Lake Giles Iron Project. The Company has created and continues to drive project milestones that include:
• Applying for tenure to support road haulage along a private haul road 93 km to the rail line south of the Project.
• Progressing negotiations for access to the export storage and load-out infrastructure at the Port of Esperance.
• Securing a pathway to allocation of contracted below and above rail network paths along the open access rail line running between Perth and Kalgoorlie.
• A product stream consisting of high grade >65% Fe magnetite and hematite fines concentrate.
Macarthur is continuing to work towards finalizing its rail contracts and securing port access.
Australia is the largest iron ore producer in the world and now enjoys additional advantages against other producers.
This is a very exciting time for Macarthur. The links to the press releases can be found below.
https://www.sedar.com/GetFile.do?lang=EN&docClass=8&issuerNo=00002108&issuerType=03&projectNo=03076160&docId=4750709 https://www.sedar.com/GetFile.do?lang=EN&docClass=8&issuerNo=00002108&issuerType=03&projectNo=03076118&docId=4750664 https://www.sedar.com/GetFile.do?lang=EN&docClass=7&issuerNo=00002108&issuerType=03&projectNo=03079399&docId=4754756