PERTH (miningweekly.com) – ASX-listed Magnetite Mines on Friday denied reports that it had launched a formal partnering or sales process for any of its assets, including its flagship Razorback iron-ore project, in South Australia.
The company told shareholders that it had received interest in the project from a range of global iron and steel industry participants over recent months, relating to securing access to the high-grade iron-ore.
Magnetite Mines has provided a number of these companies with access to a virtual data room containing asset-level technical information on the project but noted that no proposals had been received to date.
“The company welcomes investment interest at the project level and will continue discussions with potential partners in support of the development of the project with the objective of achieving maximum value for shareholders,” Magnetite Mines said on Friday.
Razorback has a 4.2-billion-tonne resource and an ore reserve of 473-million tonnes.
Magnetite Mines earlier this year completed an expansion study on the project, increasing production from the three-million tonnes a year considered in the 2021 prefeasibility study to seven-million tonnes. The single-step expansion case produced an overall post-tax internal rate of return of 27% and net present value of A$2.4-billion on total development capital expenditure of A$1.9-billion at an iron-ore 62% Fe reference price of $110/t, and Australian/US exchange rate of 0.71.