Archer Exploration signs MoU to accelerate development of Leigh Creek Magnesite Project

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Image credit: Archer Exploration ASX release

Archer Exploration Limited has signed a non-binding Memorandum of Understanding (MoU) with a local company with an operating magnesite mine, which will fast-track the development of the company’s Leigh Creek Magnesite Project located approximately 20km northwest of Leigh Creek Township in SA.

Image credit: Archer Exploration ASX release
Image credit: Archer Exploration ASX release

Under the MoU, the two parties will collaborate to execute a legally binding agreement (supply agreement) for the long term supply and mining of magnesite at Leigh Creek.

Commenting on the MoU, Archer’s Chairman Greg English said it represented a “major milestone” in the development of the project. He said the company expects to execute the binding supply agreement in late 2016, which would allow the company to greatly reduce the number of required approvals, the development timetable and the cost to commence magnesite production at the Project.

“With this MoU, Archer continues with the development of the Leigh Creek Magnesite Project. This MoU will help accelerate the Project development timetable and provide added confidence to potential offtake partners and investors in Archer,” Mr Archer added.

Adertisement

“In addition to this development, the project development team recently delivered JORC 2012 compliant Mount Hutton Central Magnesite Resources and is in discussion with third parties about access to magnesite processing and other vital infrastructure to enable the production of magnesia product.”

Archer has been developing the Project with the results of a recent project study supporting a simple open pit mining operation, third party processing and the export of high quality caustic calcined magnesia and/or monolithic dead bum magnesia to overseas customers.

Regarding its next steps, the company said it will work to finalise and execute the supply agreement and agreements with mining contractors, magnesite processors, offtake customers and the gaining of all government and other approvals required to develop the Leigh Creek Magnesite Project, which is the world’s largest cryptosrystalline magnesite deposit.