Rex Minerals Ltd has signed a non-binding Letter of Intent (LOI) with Japanese company Nittetsu Mining Co. Ltd. to establish a Joint Venture for their wholly owned Hillside Copper-Gold Project.
The Joint Venture will merge Rex and Nittetsu’s expertise to finance, develop, and operate the Hillside Project, with Nittetsu being a suitable long-term partner with Iron Oxide Copper Gold (IOCG) style exploration, development, and operation.
Following Nittetsu’s thorough due diligence, the parties have agreed to collaborate in identifying additional JV partners and securing the full finance package from debt and equity providers. Rex’s funding commitment will include the revenues from the sale of its Participating Interest to Nittetsu.
The LOI outlines Nittetsu’s initial 15% participation interest in the Hillside Project, with the option to increase its investment to 45% in the future. This interest includes contributing to Joint Venture expenditure and receiving and disposing of copper-gold concentrate production for its own account.
The Stage 1 Project’s estimated capital expenditure is estimated to be A$854 million, with 50% of the development costs funded by jointly procured debt finance facilities. Banks with extensive experience in Australian mining and development projects are keen to provide this funding, demonstrating strong interest in the project.
“Nittetsu holds corporate values and objectives that complement Rex’s ambition to fund and develop Hillside,” Rex’s Chief Executive Officer Richard Laufmann said.
“In addition to its interest in IOCG deposits, Nittetsu has a long history in mining, and operating the largest limestone mine in Japan. Nittetsu also has ongoing and long-term contracts with the Whyalla Steel Works, in South Australia, for limestone supply running for 54 years. We are excited to be working with a company that brings so much to the table,” Laufmann added.
