PERTH (miningweekly.com) – ASX-listed Magnum Mining & Exploration has inked a non-binding memorandum of understanding (MoU) with Mitsubishi Corporation covering all of the product to be produced at Magnum’s Buena Vista green iron project, in Nevada.
The MU covers all products from the project including direct shipping ore, iron concentrate, HIsmelt-produced pig iron and slag, all steel plant wastes, and excess biochar.
Magnum told shareholders on Wednesday that the MoU formed the basis for good-faith discussions to progress to a definitive agreement, and would remain in force for three years, as well as any mutually agreed upon extensions.
“This MoU gives the Buena Vista green iron project a sound basis for moving forward to a feasibility study,” said Magnum CEO Neil Goodman.
“The Ferrous Raw Materials Division of Mitsubishi is an internationally recognised and respected commodity trading team. Magnum welcomes this important strategic alliance and the surety it can bring to the project’s development.”
Meanwhile, Magnum has entered into an agreement with Shandong Province Metallurgical Engineering (SDM) to perform the feasibility study into a HIsmelt plant at Buena Vista. The study is expected to be completed within three months.
“This agreement for the feasibility study will advance the Buena Vista project’s development. SDM is one of the most experienced HIsmelt engineering companies in the world having worked on several plants in Australia, China, South East Asia. I would like to thank the entire board and team for assisting with securing this agreement with SDM,” said Goodman.