Korab receives second proposal to fund Winchester magnesite project
JOHANNESBURG (miningweekly.com) – Junior metals developer Korab Resources received a second proposal from an unrelated party regarding funding for its Winchester magnesite project, in the Northern Territory, the company reported on Monday.
Korab said that the unnamed proponent was a respected mining contracting company, which would fully fund the project to the first ore shipment stage.
Under this proposal, the mining contracting company would provide Korab with turnkey project finance, development and operation solutions subject to “various conditions precedent”.
Korab noted that the proposal envisaged that the mining contracting company would take control of the development of Winchester magnesite quarry, including the permitting process, and would take it to production at its own expense.
In exchange the mining contracting company would receive a long-term contract to operate the quarry and receive a mining royalty.
Unlike the earlier proposal made by a different company, this proposal did not envisage an upfront cash payment, offtake or equity position, Korab stated, adding that the other details of the second proposal were confidential at this stage.
The company said it was reviewing both proposals.
“No binding agreement has been entered into in respect of either of the two funding proposals. The company is actively pursuing discussions with both proponents and will advise the market shortly of the progress of the review. Discussions with the second funding proponent are at an early stage,” Korab concluded.
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