Macarthur Minerals Announces Strategic Investment by Tulshyan Group.

Macarthur Minerals (TSXV:MMS) is pleased to announce that the Tulshyan Group has made a strategic investment in the Company. The Tulshyan Group, based in Singapore, is one of the largest recyclers of scrap steel in the world, has a significant shipping business with a fleet of over 30 ships and is expanding its commercial aircraft leasing business. The Tulshyan Group has significant experience in sales, marketing of steel and iron ore and access to capital for potential development of the Company’s Western Australian iron ore projects.
David Taplin, President, CEO and Director of Macarthur commented: “Macarthur Minerals is pleased that Singapore based, Tulshyan Group, has made a strategic investment in the Company. The Tulshyan Group has significant experience in shipping, sales, marketing of steel and iron ore and has access to capital to assist in potential development of the Company’s Western Australian iron ore projects.”
Australian Iron Ore Projects
Macarthur Minerals’ Iron Ore Projects are located on mining tenements covering approximately 62km2 located 175 km northwest of Kalgoorlie in Western Australia (Figure 1 and Figure 2). Within the tenements, at least 35 km strike extent of outcropping banded iron formation (“BIF”) occurs as low ridges, surrounded by intensely weathered and mostly unexposed granites, basalts and ultramafic rocks.
The Iron Ore Projects consist of two distinct mineral projects:
1. The Ularring Hematite Project: encompassing hematite iron ore (“hematite”), to be marketed as potential direct shipping and/or beneficiated iron ore; and
2. The Moonshine Magnetite Project: encompassing magnetite iron ore (“magnetite”), to be marketed as a beneficiated magnetite concentrate.
The Company has been maintaining the core Iron Ore Projects’ assets and they remain valuable assets having previously spent over $60 million to develop them. There is real potential for the Iron Ore Projects to add significant value with the recovery of global iron ore markets.
Since July 2006 Macarthur Minerals has drilled 1,841 reverse circulation percussion drill holes (142,443 metres) and 49 diamond holes (4,170 metres) targeting iron mineralisation associated with BIF units. Exploration at both Ularring Hematite and Moonshine Magnetite projects has been sufficient to allow the estimation of Mineral Resources for both projects.
The Ularring Hematite Project’s Mineral Resource consists of Indicated 54.46 Mt @ 47.2% Fe and Inferred 25.99Mt @ 45.4% Fe1. Macarthur Minerals published a Pre-Feasibility Study in 2012, reporting Mineral Reserves2.
The Company has received approval to develop an iron ore mine for the Ularring Hematite Project and associated infrastructure at the project location under the Environmental Protection Act 1986 and the Environmental and Biodiversity Conservation Act 1999.
The Inferred Mineral Resource estimate for the Moonshine Magnetite Project was initially prepared by CSA Global Pty Ltd3 and was updated by Snowden Mining Industry Consultants, with an Inferred Mineral Resource consisting of 1,316 Mt @ 30.1% Fe4.
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A Preliminary Assessment Report was prepared on the Moonshine Magnetite Project by Snowden Mining Industry Consultants in 20115.
Australian ‘Hard Rock’ Lithium Projects
The Company has one of the largest lithium hard rock acreage packages in Australia, covering an area of 2,138 square kilometres (528,311 acres) across the Pilbara, Ravensthorpe and the Yalgoo/Edah regions of Western Australia. Initial reconnaissance across the Company’s acreage has been encouraging, including initial assay results from rock chips of up to 3.75% lithium (Li₂O) received at the Yalgoo Lithium Project (see the Company’s announcement dated October 12, 2016). The Company is working on exploring its lithium projects in Western Australia with the aim of discovering and developing an economic resource.
Nevada ‘Brine’ Lithium Project
The Company’s Stonewall Lithium Project located in the Lida Valley, in southern Nevada, covering approximately 12,019 acres (48.64 square kilometers). As previously announced, lithium has been detected at the Stonewall Project from a shallow drilling program conducted as part of due diligence for acquisition of the Stonewall Project. All nine shallow drill holes reported lithium, with grades up to 145.5 ppm Li from near surface sediment, confirming that lithium is present in the Lida Valley6.
Details of the Private Placement
The Company has entered into a share subscription agreement and received gross funds of C$243,750 from the Tulshyan Group for a private placement of 3,750,000 shares of the Company at a price of C$0.065 per share, to be held by the Company in escrow until closing.
The closing of the private placement will occur as soon as possible after and subject to receipt of all necessary regulatory approvals including that of the TSX-V. The net proceeds from the private placement will be used for working capital purposes. The securities issued pursuant to the private placement will be subject to a statutory 4 month plus one day hold period from the date of issuance.
Australian Securities Exchange Listing Update
The previously announced Australian Securities Exchange (“ASX”) Initial Public Offering (“IPO”) of the Company’s Australian lithium and iron ore projects, is well advanced. Macarthur Minerals will maintain majority ownership and control of the ASX IPO listed entity.
The board of Macarthur Minerals believes that an ASX IPO of its Australian subsidiaries, which hold its Australian ‘hard rock’ lithium and iron ore projects, will provide improved price realisation for those projects more consistent with its ASX listed peers.