- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Macarthur Signs Iron Ore Offtake with Glencore for Lake Giles
Macarthur Minerals has signed a life-of-mine offtake agreement with Glencore for iron ore from its Lake Giles project in Australia.
Macarthur Minerals (TSXV:MMS,OTCQB:MMSDF) has signed a life-of-mine offtake deal with Glencore (LSE:GLEN,OTC Pink:GLCNF) for iron ore from its Lake Giles project in Western Australia.
Valued at approximately US$4 billion, the binding agreement is set to see Macarthur supply approximately 4 million tonnes per year to Glencore for the first 10 years of production. It also comes with the option to extend the agreement by an additional 10 years, which would entail Glencore receiving all of Lake Giles’ future iron ore production.
However, Glencore also agreed to release up to 70 percent of its offtake from Lake Giles in the event that Macarthur locks down project financing from another potential offtake partner.
“Seeing a commitment of this size validates our resource and project and puts Macarthur in a position to maximize value to our shareholders. Macarthur’s management is pursuing debt financing discussions with European banks and international financial institutions,” Macarthur Executive Chairman Cameron McCall saidin a statement.
“Achieving this key milestone is the beginning for Macarthur to transition into a large-scale global resource production company. A project of this size will provide long-term Western Australian job creation for a generation, especially in the local region of the proposed iron ore mines and for the port workforce in Esperance.”
Located in Western Australia’s Yilgarn region, Lake Giles is situated close to usable infrastructure, including “considerable spare port and rail capacity” such as the Port of Esperance, which has an iron ore export capacity of 11.5 million tonnes.
Over the last several weeks, the company has been seeking out private placements and financing to help get a bankable feasibility study off the ground for its Moonshine magnetite and Ularring hematite iron ore deposits.
Moonshine, a prospect at Lake Giles, has an inferred mineral resource of approximately 1.3 billion tonnes at 30.1 percent iron. According to Macarthur, metallurgical test work on Moonshine has indicated that it can achieve an export product of over 65 percent iron, which currently holds a market value of US$98 per tonne.
As of 6:15 a.m. EST on Thursday (March 21), iron ore was trading at US$85.65 per tonne.
Glencore’s share price closed 1 percent lower on the LSE on Thursday, hitting GBX 316.95 by the end of trading. Meanwhile, Macarthur’s share price remained unchanged at C$0.05 on the TSXV, as the company halted trading on Thursday morning.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
Latest News
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.