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Fenix completes $25 million iron ore acquisition


Fenix Resources has completed the acquisition of Mount Gibson Iron’s Mid-West iron ore, port and rail assets.

In June 2023, Mount Gibson reached conditional agreement to divest its Mid-West hematite iron ore mining and infrastructure assets to Fenix for $25 million. The deal compromised of $10 million in cash and 60 million Fenix shares and additional options.

The agreement makes Mount Gibson the single largest shareholder in Fenix with an approximate interest of 8.6 per cent.

The assets acquired by Fenix include:

  • the Shine iron ore mine, an operational iron ore mine currently on care and maintenance with a mineral resource estimate of 15 million tonnes at 58 per cent
  • two storage sheds at Geraldton Port that are on-wharf infrastructure consisting of Shed 4 with storage capacity of 120,000 tonnes and Shed 5 with storage capacity of 240,000 tonnes both with in-loading access via truck or rail
  • the two mid-west rail sidings, Ruvidini and Perenjori rail sidings, providing access to the main Mid-West rail network connecting to Geraldton Port and assembly locations for product storage and blending activities
  • assets at the Extension Hill iron ore mine that are large scale operational crushing and screening plant, associated equipment, and interests in an operational 138 bed mining camp, all currently on care and maintenance.

The acquisition is expected to provide Fenix with opportunities such as reducing the cost of its Iron Ridge project located approximately 600 kilometres north-northeast of Perth, Western Australia, as well as expanding the project’s production.

Fenix chairman John Welborn said the acquisition of Mount Gibson’s Mid-West iron ore and port assets is a game changer.

“This transformational event for Fenix will drive material economies of scale, provide flexibility to expand iron ore production and operate new projects concurrently,” Welborn said.

“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.”

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