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Andrew Todd
Macarthur Minerals has secured a major endorsement of its iron ore assets from WA mining services heavyweight, with Mineral Resources co-founder Steve Wyatt emerging as the new major shareholder following the company’s $1.25 million capital raise.
For a mineral expert with as much operational experience as Wyatt to put skin in the game seems to speak volumes for Macarthur’s iron ore prospects.
Its arrival on the register not only marks a huge vote of confidence in the company’s prospects, it also brings with it a vast pool of expertise in running mining operations from concept to production.
Macarthur says the new funds will be used to maintain the company’s homes in good condition and for general working capital as it moves forward with its Lake Giles steel project.
‘Mr Wyatt and his associated companies bring extensive experience in contracting and mineral processing.’
Macarthur Minerals executive chairman Cameron McCall
The company says that Wyatt has now become the primary investor in Macarthur, heavily backed by the placement and acquisition of an off-market share from Gold Valley Yilgarn, and its holding company, Destec Holdings.
The credentials of a skilled operator in the WA mining environment are well known and important. Not only was he the co-founder and general manager of a mining company, Mineral Resources, he also runs a group of mining services companies through Destec.
Destec is a WA-based mining services group specializing in engineering, construction and operations services, including mineral processing and equipment handling.
Macarthur Minerals executive chairman Cameron McCall said: “Mr. Wyatt and his associated companies bring extensive experience in contracting and mineral processing, having been a founding shareholder and General Manager of Mineral Resources’ crushing and handling equipment division.”
A Wyatt-backed play is Macarthur’s Lake Giles iron ore project in WA’s Yilgarn region. The project currently owns a large magnetite resource of more than 1.2 billion tons, with an inferred mineral reserve of 236.6 million tons.
The fields also contain the Ularring hematite resource, which contains 54.5 million tons of direct iron ore at a grade of 47.2 percent iron in the indicated unit and another 26 million tons at 45.4 percent iron in the inferred unit.
In particular, Macarthur already has a mining concession for its hematite deposit. Under the June 2024 contract, Gold Valley can mine hematite for an upfront payment totaling A$750,000 – which has now been paid.
A further significant payment of A$5 million is due after each of the first two million tonnes of ore is sold and a royalty of $1 per tonne will be paid thereafter for the life of the mine.
The company says a recent refocus on tight cost controls and strong alignment with its majority Australian shareholder base is critical to the future success of its flagship Lake Giles project.
With the heavy miner now on the books and on track to cash in, Macarthur looks to strengthen the foundations under its sprawling Lake Giles project.
If the company can continue to tighten its strategy and translate its large resource base into tangible development milestones, Lake Giles could yet evolve from an ambitious concept into one of WA’s operations.
Is your ASX listed company doing something interesting? Address: mattbirney@bullsnbears.com.au
