PERTH (miningweekly.com) – ASX-listed Fenix Resources has completed the near A$25-million acquisition of fellow-listed Mount Gibson Iron’s Mid West iron-ore mining and infrastructure assets.
The assets include the Shine iron-ore mine, two storage sheds at Geraldton port with a combined capacity of 360 000 t, two Mid-West rail sidings and assets at the Extension Hill iron-ore mine. The Shine mine, which is currently on care and maintenance, is estimated to host a mineral resource of 15-million tonnes.
Fenix said on Monday that the transaction consideration of A$10-million in cash and 60-million Fenix shares, along with 25-million options, has now been transferred to Mount Gibson.
With a closing price of 31c a share, Mount Gibson’s shareholding is worth over A$18-million.
“Acquiring Mount Gibson’s Mid-West iron-ore and port assets is a game changer. We are extremely excited about the start of a new chapter for Fenix. We are delighted to be continuing the successful legacy of Mount Gibson in the Mid-West and to have their support as a large shareholder,” said Fenix MD John Welborn.
“This transformational event for Fenix will drive material economies of scale, provide flexibility to expand iron-ore production and operate new projects concurrently. In expanding a mine-to-port logistics solution for ourselves and other producers in the Mid-West, we also create employment opportunities which will strongly support regional economic growth and create exceptional shareholder value.”
Mount Gibson on Monday said that the transaction realised value for assets which were not reflected within the company’s share price, and enabled Mount Gibson to participate via a direct equity interest in an exciting and expanded high-grade Mid-West iron-ore mining and bulk materials logistics business.
“Consolidating our remaining Mid-West iron-ore assets with those of Fenix is a sensible and attractive combination with the potential to unlock and generate substantial further value for the shareholders of both companies, as well as to support the ongoing growth of bulk materials exports from Geraldton port. We look forward to a positive long-term relationship with Fenix as one of its major shareholders,” said Mount Gibson CEO Peter Kerr.