Oz Minerals opts out of Mt Woods JV
PERTH (miningweekly.com) – ASX-listed Oz Minerals would withdraw from its joint venture (JV) with ASX- and TSX-listed IMX Resources, as the company moved to further cut exploration costs. To date, Oz Minerals has spent some A$14-million on exploration at the Mount Woods copper/gold JV, in South Australia.
Oz's decision to relinquish its interest in the non-iron-ore rights of the Mount Woods tenement area meant that 100% of the ownership and the mineral rights would now revert back to IMX.
Earlier this year, Oz made a A$5-million cash play to acquire IMX’s 49% shareholding in the project, but the deal was called off in February.
“IMX and Oz Minerals have worked together for several years on work programmes in the Mount Woods inlier, as well as the surrounding community,” said IMX MD Neil Meadows.
In 2012, Oz reduced its exploration expenditure on its own tenement properties in the Prominent Hill region, and since the start of 2013 has focused only on near-mine growth.
The withdrawal from the JV was thought to be consistent with Oz’s strategy, with the bulk of the expenditure having been incurred in the early years of the JV.
“I understand and respect both Oz Mineral’s decision to withdraw from the Mount Woods JV and the manner in which they have conducted themselves when communicating their decision. The positive in this for IMX shareholders is that with the tenements remaining in good standing and now unencumbered, the task of finding a partner for the development of our Mount Woods magnetite project should be enhanced.”
The Mount Woods magnetite mine would require a capital investment of some A$294.6-million to develop a 2.5-million-tonne-a-year operation. A scoping study predicted that the project would have a 25-year mine life, delivering a net present value of some A$289-million.
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