PERTH (miningweekly.com) – Junior Rex Minerals is hunting for a partner for its Hillside copper/gold project, in South Australia.
The ASX-listed company is seeking direct participation through a minority interest in the project, and has already received a number of project participation and product offtake inquiries, Rex said on Friday.
The partnering process follows the recently completed optimised feasibility and definition phase engineering study in December, which estimated a post-tax net present value of A$847-million and an internal rate of return of 19%. The study estimated first concentrate delivery in the fourth quarter of 2025, at a rate of 42 000 t/y of copper and 30 000 oz/y of gold over a 20-year mine life, with the capital cost for the project estimated at A$854-million.
“Hillside is unique – it's copper, it’s ready to go – fully-permitted and long life. Located in South Australia, Hillside offers near-term exposure to the global electrification thematic,” said Rex MD and CEO Richard Laufmann.
“We are not surprised that Hillside is attracting significant interest from participants across the global clean energy supply chain. With first copper concentrate production from Hillside forecast to coincide with looming market deficits that are expected to continue to grow, Hillside is optimally timed to supply copper into the accelerating global energy transition.
“With a final investment decision targeted for mid-2023, we look forward to formally engaging with potential partners to crystallise a transaction that can generate a positive outcome for shareholders and support the long-term growth of our business.”
Rex told shareholders on Monday that the company would consider various potential transaction structures, with the preference being a minority third-party participation at the Hillside asset level.
The company will engage with parties who show a strong interest in the future of copper and in partnering at Hillside, and who can "meaningfully enhance" the value of the project for shareholder through additional financing support, technical capability or marketing support.
The partnering process will form part of the overall funding package that Rex is actively pursuing via a structured process to align with detailed engineering, construction and operational readiness plans. The partnering process will run in parallel to the ongoing senior debt process, which has received strong interest to date from a range of highly-credentialed potential financiers and banking institutions.