Fenix Resources Ltd (ASX:FEX) has completed the acquisition of the remaining 50% interest in a haulage joint venture (JV) company, Fenix-Newhaul Pty Ltd, consolidating ownership under FEX’s banner.
The company issued Newhaul Pty Ltd, its former joint venture partner, $7.5 million in cash and 30 million fully paid ordinary shares in Fenix Resources in return for the remaining interest in the haulage company.
Newhaul founder Craig Mitchell has also been nominated to join the Fenix board, to be appointed as a director as of September 1, 2022.
Through the acquisition of Fenix-Newhaul, the company has become a fully integrated mining and logistics hauling operation.
Fenix expects this integration of operations to substantially reduce direct production and shipping expenses and provide additional flexibility in haulage operations.
Leadership transition
Fenix has progressed from a junior explorer to a producer-haulage company in just four years, prompting the company to seek a leadership transition to support the expansion of the business.
Rob Brierley, managing director at FEX, has tendered his resignation, although he will continue in his role for the next three months to assist the company in facilitating an orderly hand-over.
Fenix chair John Welborn acknowledged Brierley on his achievements during his four years with the company.
“Rob has been a key part of Fenix’s journey from junior explorer to iron ore producer. He has guided the development of the company’s 100% owned, flagship Iron Ridge Iron Ore Project, a premium deposit that hosts some of the highest-grade iron ore in Western Australia," Welborn said.
“Under Rob’s direction, Fenix secured port facility at Geraldton, received all required approvals and commenced production from Iron Ridge in December 2020 with first sales generated in February 2021.”
“Fenix is a profitable dividend-paying mining company which ended the financial year with more than $100 million in cash.
“The recently achieved step-change transaction consolidating 100% ownership of Fenix-Newhaul has positioned Fenix for a period of exciting transformational growth and provides the perfect platform to enhance our leadership team.
“On behalf of the board and all shareholders of Fenix, I thank Rob for his service to the company and wish him well in his future endeavours.”
Fenix has begun an executive search to recruit candidates for the company’s new executive leadership team. The company will release announcements as appointments are finalised.
About Fenix Resources
Fenix Resources is a Western Australian-based iron ore producer, operating its flagship Iron Ridge Iron Ore Project in the mid-west mining region of Western Australia.
Iron Ridge holds a JORC-compliant direct-shipping iron ore (DSO) deposit of 9.8 million tonnes at 64.4% iron, one of the highest-grade deposits in WA.
First production began in December 2020, and the deposit has since produced about 1.8 million tonnes of ore.