MMSDF - MACARTHUR SIGNS BINDING TERM SHEET WITH GOLD VALLEY YILGARN ON RIGHT TO MINE | Benzinga

VANCOUVER, BC, June 18, 2024 /CNW/ - Macarthur Minerals Limited (TSXV:MMS) (ASX: MIO) (OTCQB:MMSDF) (the Company or Macarthur), is pleased to announce the execution of a binding Term Sheet ("Agreement") with Gold Valley Yilgarn Pty Ltd ("Gold Valley").  The Agreement grants Gold Valley the right to extract hematite ore from Macarthur's Lake Giles Ularring Hematite Project in Western Australia.  The Agreement excludes mining of magnetite iron ore from the 1.3 billion tonne Lake Giles Moonshine Magnetite Project, the subject of the 2022 Feasibility Study.

• Key Terms of the Right to Mine Agreement
  
  • Gold Valley granted the right to mine hematite ore from the Lake Giles Ularring Hematite Project
  • Macarthur retains legal and beneficial ownership of all tenements.
  • Gold Valley is responsible for all expenses necessary to maintain the tenements covered by the Agreement in good standing.
  • Gold Valley is required to pay all State Government Royalties.
  • Gold Valley must secure all necessary regulatory, statutory and other approvals required to commence mining.
  • The Agreement shall continue for life of mine.
  • The parties shall negotiate, finalise and execute a detailed agreement within 45 days of the execution of the Agreement.
• Gold Valley to pay Macarthur the following consideration:
  
  • A payment of A$250,000, is payable upon the signing of the Term Sheet on 13 June 2024 (the Effective Date)
  • A payment of A$250,000 on 30 September 2024
  • A payment of A$250,000 on 31 December 2024
  • A$5,000,000 upon the extraction and sale by Gold Valley of 1,000,000 dry metric tonnes (DMT) of Direct Shipping Ore (DSO) from the Lake Giles Project
  • A$5,000,000 upon the extraction and sale by Gold Valley of an additional 1,000,000 dry metric tonnes of DSO from the Lake Giles Project; and
  • A royalty payment of A$1 (one dollar) for all additional tonnes mined by Gold Valley beyond the initial 2,000,000 DMT for the life of mine

Macarthur Chairman, Cameron McCall commented:

"I express my gratitude to all the members of the Macarthur team and extend my congratulations to Gold Valley on securing the Right to Mine Agreement. This milestone marks a significant initial stride in advancing our valuable iron ore assets in Western Australia into production. The hematite deal serves as a catalyst for this Project, as it underpins and derisks the financial viability of the Company for the life of mine. It represents a pivotal step for Macarthur, bolstering the financial sustainability of our operations throughout the mine's lifespan as we progress towards bringing our much larger, 1.3 billion tonne Moonshine Magnetite Iron Project to market.   This hematite agreement signifies the first phase of a multi-stage, multi-generational green iron ore initiative."