Leederville-based mining company Fox Resources Ltd will sell copper ore from West Perth-based Straits Resources Ltd in a deal potentially worth $4 million.
Leederville-based mining company Fox Resources Ltd will sell copper ore from West Perth-based Straits Resources Ltd in a deal potentially worth $4 million.
The full text of a company announcement is pasted below
Fox Resources Ltd today announced that it has entered into an agreement with Straits Resources Ltd to sell its stockpiled copper oxide ore from the Company's West Whundo Copper Project.
The sale agreement comprises an upfront payment by Straits of $1 million, a further payment of $1 million after delivery of the oxide ore and a future payment of up to $2 million which is dependent on the future copper price after processing of the oxide copper ore at the Whim Creek mine.
Fox's Managing Director, Mr Don Harper, said the alliance with Straits enables Fox to maximise its revenue opportunities in the Pilbara.
"We're constantly looking for new ways to drive value for our shareholders and this ore wasn't being utilised - this agreement represents a valuable new revenue stream and something we'd been hoping to establish," said Mr Harper.
Copper oxide ore has been stockpiled on the surface at West Whundo for the last 6 months as part of the waste removal to expose the high grade supergene copper ore which is being processed through the Radio Hill mill. Copper oxide ore requires a heap leaching process that is not available at Radio Hill.
Straits own and operate the Whim Creek Solvent Extraction-Electrowinning Copper Mine, approximately 160km north of the Radio Hill Mine near Karratha in Western Australia. Straits will purchase copper oxide ore from Fox and will utilise the well established heap leach facilities at Whim Creek. This arrangement provides Fox with the opportunity to receive revenue from the
copper oxide from West Whundo and planned oxide production from the upgraded Whundo resource.
"Having Straits as a neighbour in the Pilbara is a tremendous asset that we've recognised for some time - having a SX-EW plant in the area is like having a smelter in your backyard," he said. Straits have an impressive track record in the development and operation of SX-EW operations and are widely recognised as a leading authority on the technical aspects and controls associated with this type of enterprise.
"This agreement not only enables Fox to drive new revenue from its oxide ore but also establishes the basis for co-operation for exploration opportunities between the companies as Fox advances the development of its base metal assets in the Pilbara."
