GWR has inked a binding term sheet with Jindalee Resources Limited to acquire 70% interest in the Prospect Ridge Magnesite project in Tasmania.
The Prospect Ridge Magnesite project is located 55kmWest South-West from the Port of Burnie, the largest general port in Tasmania.
It sits on a granted exploration licence, it is 11km long and 51 km2 and contains two deposits: the Arthur River and Lyons River deposits which contain the third largest magnesite inventory in Australia.
“The GWR team has reviewed a number of projects that will move the company into the “green sector” and we believe the advanced Prospect Ridge Magnesite project provides an excellent opportunity to enter the “green” global magnesium market whilst enabling GWR to apply our experience in bulk commodity mining and tap into our network of offtake partners and end users,” said GWR Chairman Gary Lyons in an ASX Announcement.
“The Prospect Ridge Magnesite project has had a substantial amount of work undertaken, including diamond drilling, metallurgical test work, environmental and aboriginal heritage surveys and feasibility studies. We believe it may have the potential to be low capex DSO operation which is close to a significant deep-water Port in Tasmania and the GWR team will be funded to accelerate the project with the aim of adding significant shareholder value.”
According to Mr Lyons, the project will enable the company to enter the “green” and EV space, potentially opening key doors to the high-capacity, fast charging, and rechargeable magnesium-ion battery market.
Following the agreement, GWR will raise $2 million before costs via a Placement to assist with working capital and to fund work programs to advance the project.
