Mindoro ups shareholding in Agata
PERTH (miningweekly.com) – Dual-listed Mindoro Resources has moved to increase its shareholding in the Agata iron-ore project, in the Philippines, following a positive feasibility study.
The ASX- and TSX-listed Mindoro said on Tuesday that it has renegotiated an option to acquire an additional 25% interest in the project from Philippine partner Minimax Mineral Exploration Corporation.
The company already owns a 75% shareholding in the project, but has granted TSX-listed TVI Pacific an option to earn a 60% interest in Agata, which was also acting as operator.
“Acquiring this additional 25% interest in the Agata project represents a major milestone in our strategy to rebuild the company. The robust economics outlined in the September high iron direct shipping operation (DSO) feasibility study indicate a compelling investment case for this additional interest,” said Mindoro CEO Tony Climie.
He noted that not only would Mindoro gain access to an additional 25% of potentially near-term cash flow from the DSO operation, but the company’s interest in any future nickel production would now be 40%.
Under the renegotiated option agreement, Mindoro’s Philippine subsidiary could purchase the remaining 25% interest in Agata for $200 000 in cash, the forgiveness of the existing $5.3-million Minimax debt, a A$1-million annual payment over a four-year period from the DSO operations, and a 0.5% net smelter royalty for the life of the processing operation.
The feasibility study estimated that the Agata project would require a capital investment of some $10.1-million, and would deliver a net present value of $37.9-million and an internal rate of return of 187%.
First DSO shipments would take place by the fourth quarter of 2013, and shipping rates would accelerate to 2.5-million tonnes a year by 2015.
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