Join our daily newsletter At The Bell to receive exclusive market insights
- Exploration company GWR Group (GWR) has signed a new offtake agreement with Pacific Minerals and dropped its joint venture agreement with a Wiluna Mining (WMX) spinoff
- The company has signed an offtake agreement with Pacific Minerals (PML) for one million tonnes of production and sales from the C4 Iron Ore Project in WA
- The one million tonnes represents the full estimated tonnage for stage one of the C4 project
- Additionally, after reviewing the Wiluna West Gold Project, the company has stopped toll milling discussions with WMX’s Wiluna Operations
- GWR has also terminated its JV agreement with Wiluna Operations due to its planned transition from the treatment of oxide ore to sulphide ore
- On the market this morning, GWR is down 14.3 per cent and trading at 27 cents per share
GWR Group (GWR) has signed a new offtake agreement with Pacific Minerals and dropped its joint venture agreement with a Wiluna Mining (WMX) spinoff.
Offtake agreement
The company has signed an offtake agreement with Pacific Minerals (PML) for one million tonnes of production and sales from the C4 Iron Ore Project in WA.
The agreement covers the full estimated stage one production tonnage at the project. Overall, C4’s mineral resource estimate is 21.6 million tonnes at 60.7 per cent iron.
Given the current high iron ore prices, GWR has begun assessing and modelling to increase production tonnage for stage one of the C4 project.
Notably, PML’s subsidiary, Pacific International Co, is the second-largest shareholder of the ASX-listed iron ore producer Grange Resources (GRR) and deals with clients such as Rio Tinto (RIO), BHP (BHP), Anglo American (AAR) and Peabody Energy.
GWR Chairman Gary Lyons is pleased with the new partnership.
“The competitive nature of the bidding process for GWR’s ore is testament to the quality of the product. As outlined in recent announcements, we are actively working to increase the tonnage in stage one and are confident of our target of first ore at port in early January 2021,” he said.
“Additionally, we are discussing stage two production with interested parties to leverage our position in the current buoyant price environment for iron ore,” he added.
GWR is on track to meet its project production milestones.
Wiluna joint venture
Following a review of GWR’s Wiluna West Gold Project, the company has stopped toll milling discussions with WMX’s Wiluna Operations.
Additionally, GWR has also terminated its JV agreement with Wiluna Operations due to its planned transition from the treatment of oxide ore to sulphide ore.
GWR says it is now looking at other opportunities to develop the project.
On the market this morning, GWR is down 14.3 per cent and trading at 27 cents per share at 11:51 am AEDT.
