Posted on 15 Sep 2023
Australian iron ore firm CuFe has completed its full acquisition of the JWD iron ore project, Kallanish notes.
CuFe previously announced a binding agreement with entities associated with its major shareholder Gold Valley Group (GVG) to acquire the remaining 40% joint venture interest in the JWD (increasing to 100%). The agreement is to restructure various other obligations that exist between the parties with respect to the Tennant Creek joint venture and the Yarram joint venture.
Following satisfaction of the conditions precedent, the restructure transaction completed on 1 September. The company has issued 150 million ordinary shares.
The company advises that sales volumes for the quarter to date are 113,000 tonnes, which has the mine on track to achieve its highest quarterly sales volume since exports commenced.
Meanwhile, the $2 million debt facility drawn in January 2023 to fund the restart of JWD mining operations is fully repaid.
CuFe executive director Mark Hancock says iron ore prices have moved up strongly in the last couple of weeks with improved demand and increased recognition of low iron ore inventory at Chinese mills. He says this will likely lead to rapid restocking if steel production continues to recover.
"Our production is tracking well which positions us to take advantage of the improvement in the market," he adds.
Source:Kallanish