Mineral Resources (ASX: MIN) refers to its announcements on 27 July 2018 and 21 January 2019 regarding the Farm-in and Joint Venture Agreement (FJVA) between Brockman Mining (ASX: BCK) and the Company in relation to the Marillana iron ore project in the Pilbara.
Mineral Resources (ASX: MIN) refers to its announcements on 27 July 2018 and 21 January 2019 regarding the Farm-in and Joint Venture Agreement (FJVA) between Brockman Mining (ASX: BCK) and the Company in relation to the Marillana iron ore project in the Pilbara.
To acquire a 50% interest in Marillana, the Company (by its wholly owned subsidiary Polaris Metals Pty Ltd) must spend A$250,000 on exploration and development activities on the Marillana tenements and complete the process design criteria of the processing plant(s), optimise its mine plan study and finalise its mine development layout plan (Farmin Obligation).
The parties to the FJVA have agreed the Farm-in Obligation may take up to a further 12 months to complete (31 July 2020) and they have agreed to extend the following key dates under the FJVA:
1. construction commencement of the rail and port system under the FJVA is to be extended from ‘on or before 31 December 2019’ to ‘on or before 31 December 2020’;
2. operation commencement of the rail and port system under the FJVA is to be extended from ‘on or before 31 December 2021’ to ‘on or before 31 December 2022’.
As a consequence, the parties have also agreed to extend the time for satisfying the conditions precedent to the Mine to Ship Agreement executed on 21 January 2019 (MSA) from 31 December 2019 to 31 December 2020.
The MSA conditions precedent include execution of an agreement with the State of Western Australia, procuring all the leases and licences for the light rail system and at Port Hedland, the Company obtaining the finance to fund the construction and commissioning of the rail and port infrastructure and the Company’s board making a final capital investment decision to proceed with the infrastructure project.
