Korab mulls restructure after Dec MoU
PERTH (miningweekly.com) – ASX-listed junior Korab Resources on Tuesday told shareholders that the company had started a review of various corporate restructuring options, with a view to maximise shareholder wealth and the opportunities for shareholders to directly participate in the expected growth of subsidiary AusMag.
The review followed from a December memorandum of understanding (MoU) with a representative from the Chinese steel industry, which could result in funding for the development of the Winchester magnesite mine, in the Northern Territory.
Under the MoU, the parties would explore funding for AusMag to allow for the development, operation and the start of production of magnesium carbonate from the Winchester mine.
The agreement would also look at offtake agreements with Chinese steel mills and the listing of AusMag in Hong Kong or Shanghai, or another suitable exchange.
Korab said on Tuesday that both the company and its subsidiary had met with Chinese steel major Shandong Iron & Steel, following the signing of the MoU, with the Chinese major providing feedback regarding the plan to develop Winchester and grow AusMag into a leading supplier of magnesium carbonate and its derivatives.
As part of this feedback, Shandong requested samples of magnesite rock from the Winchester deposit for extensive testing, and it was expected that the samples would be provided shortly.
A 2015 prefeasibility study estimated that the Winchester project would require a capital investment of A$4-million and considered various capacity levels, ranging from a 250 000 t/y to a one-million-tonne-a-year run-of-mine capacity.
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