Centrex Metals cements JV with Wuhan Iron and Steel
Centrex Metals (ASX: CXM) has signed a Supplementary Agreement with
Wuhan Iron and Steel (Group) Co (WISCO) for its Eyre Peninsula Iron Ore
The agreement was signed in Wuhan, China, on 27 April and
Centrex said that all outstanding conditions have been fulfilled for
the earlier signed agreement with WISCO.
Also, a new agreement has been signed with WISCO to develop Centrex’s Sheep Hill Port Facility also located on the Eyre Peninsula.
The main terms of the Supplementary Agreement are: the inclusion of conditions resolving WISCO’s concerns over non-ferrous mineral rights holders (Lincoln Minerals Limited) on the Joint Venture tenements; and WISCO warranting that all Chinese Government Approvals have been received.
As all Conditions Precedent have now been met it is expected that completion and financial close for the deal will occur by the end of May.
The principal terms of the Eyre Peninsula Joint Venture are:
- WISCO to take a 60% interest in the iron ore rights to five of Centrex’s exploration tenements on the Eyre Peninsula, South Australia.
- WISCO to pay Centrex A$ 51.5 million on completion (A$ 0.5 million deposit already paid) and a further A$ 26 million on the first anniversary of the completion (total A$ 78 million).
- WISCO to pay four further payments of A$ 27 million if and when the JORC Inferred Resources for the project reach 1.25Bt, 1.5Bt, 1.75Bt and 2.0Bt respectively (up to an additional A$ 108 million).
- WISCO to additionally sole fund the first A$ 75 million of exploration for the Joint Venture.
- WISCO to assist with project financing for construction.
On the back of this Joint Venture, Centrex has also announced that it signed a Heads of Agreement (HOA) with WISCO at the same time as the Supplementary Agreement to develop Centrex’s Sheep Hill Port Facility also located on the Eyre Peninsula.
Principal terms of the Sheep Hill Port HOA are:
- WISCO and Centrex to each take a 50% share in a new incorporated Ports Company.
- The new Ports Company to seek approvals for the development of a Cape size vessel capable deep water port facility for use by the Parties and other potential 3rd Party bulk commodity exporters on the Eyre Peninsula.
- Parties agree to proceed to submit a Development Application (“DA”) for the facility as soon as practical.
- WISCO to assist with project financing for port construction.
Centrex Chairman David Klingberg said “these final agreements with the highly respected Chinese steel giant WISCO clear the way for a large exploration program and the potential development of major mining and infrastructure on the Eyre Peninsula."
"The benefits to Centrex, the Eyre Peninsula and the state of South Australia are significant,” he added.
- Bauxite Resources公司收到大量持股通知
- ASF Group的联营公司将Dawson West热煤项目的资源储量提升至6.45亿公吨
- White Cliff Minerals公司于Aucu项目发现新的矿化带
- Bauxite Resources公司非执行董事卸任
- South Boulder Mines公司董事长购买市售股份
- Carbon Energy公司筹资500万澳元以推进天然气项目
- South Boulder Mines公司降低Colluli钾肥项目的运营开支和资本开支