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- Magnum Mining and Exploration (MGU) is rapidly progressing work at its Buena Vista Project in Nevada to bring forward export shipments of iron ore
- Managing Director Dano Chan will relocate to the U.S. state this week to oversee development
- Meanwhile, Magnum has confirmed the opening of its Salt Lake City office, which it expects to be operational by the end of the month
- The company is negotiating the purchase and offtake of its iron ore with several tier-one steel mills and conglomerate commodity buyers
- MGU will send a second set of iron ore samples for lab testing to determine a final design and costings to produce HBI and pig iron
- Magnum shares are down three per cent, trading at 16 cents each
Magnum Mining and Exploration (MGU) shares have dipped slightly on Tuesday, despite news the company is rapidly progressing work at its Buena Vista Project in Nevada.
The company acquired the U.S.-based iron ore project for $7 million in cash and shares back in October.
To oversee the development, managing director Dano Chan will relocate to Nevada this week and is expected on site before May 14.
The move comes as MGU ramps up discussions with port authorities alongside work with contractors and logistics firms to bring forward export shipments of its high-grade direct ship ore.
The company intends to expedite all necessary requirements to commence shipping within the earliest possible timeframe.
MGU Managing Director Dano Chan commented on the progress in Nevada.
“We are initially focussing on mining the high-grade pods, which allow Magnum to start generating cash flow quickly and accelerate the development, size and scale of the mine to take advantage of the record iron ore prices,” Dano said.
“We expect this fast-track distribution system operator strategy to bring value to our shareholders, limit shareholder dilution and also help fund the expansion of the mine and growth plans for future hot briquetted iron (HBI) green steel product.”
Meanwhile, Magnum has confirmed the opening of its office in Salt Lake City, which it expects to be operational by the end of May.
The company is now in discussions with several tier-one steel mills and conglomerate commodity buyers for the purchase and offtake of its iron ore.
Additionally, MGU will send a second set of iron ore samples for lab testing to determine a final design and costings to produce HBI and pig iron.
Magnum shares have dipped three per cent to trade at 16 cents at 12:06 pm AEST.
