Fenix Resources Ltd (ASX:FEX) has secured $2 million from Terra Mining Pty Ltd and Extension Hill Pty Ltd (EHPL) for the completed sale of the decommissioned Extension Hill hematite operation in Western Australia's Mid-West.
The Extension Hill assets comprise a large-scale crushing and screening plant, associated equipment and interests in a 138-bed mining camp, which had all been on care and maintenance since 2021.
The transaction also included the transfer of all Fenix’s residual rehab obligations at Extension Hill.
Mutually advantageous transaction
“Sale of the Extension Hill assets was a mutually advantageous transaction, which serves to benefit all parties involved including the local community,” Fenix Resources chair John Welborn said.
“The Extension Hill assets will have huge value for EHPL and serve to assist EHPL and Terra Mining in bringing the Extension Hill Magnetite Project into production.
“Removing the Extension Hill Assets from Fenix’s portfolio will extinguish a $5 million rehab liability and allow Fenix to focus on near-term value-driving revenue growth prospects, such as bringing W11 into production and investigating further expansion opportunities.”
Fenix is focused on high-grade, high margin iron ore production, with assets in the Mid-West mining region.
Production at the flagship Iron Ridge Project began in December 2020 and is currently running at an annual production rate of 1.3 million tonnes.
Fenix operates a fully integrated mining and logistics business. High-quality iron ore products are transported by road to Geraldton using the company’s 100%-owned Fenix-Newhaul haulage and logistics business.
The company operates its own loading and storage facilities at Geraldton Port with storage capacity of up to 400,000 tonnes and loading capacity of more than 5 million tonnes per annum.