Base metals miner Fox Resources has been forced to suspend a $30 million funding agreement with a Chinese co-operative for its Radio Hill nickel-copper project because of continued weakness in commodities prices.
Fox announced a non-binding memorandum of understanding in November last year with China’s Jiangxi Jiangli SciTech Co, to fund the initial phase of the Radio Hill project in the Pilbara.
Interim chief executive Laurie Chew said today the decision to suspend the MOU was a mutual one.
“Unfortunately it is a result of external forces which remain beyond our control, although both parties have agreed to revisit the MOU when commodity prices improve,” Mr Chew said.
Mr Chew said discussions with potential off-take partners and overseas financiers to fund the development of Radio Hill were continuing.
Fox plans to mine an inventory of six million tonnes of mineralised ore over a nine-year mine life.
The mine has been in care and maintenance since 2008.
The company’s stock closed steady today on the ASX, finishing at 5.2 cents.