- WA explorer Fenix Resources (FEX) has executed its road transport contract for its Iron Ridge Project with Fenix Newhaul
- The business is a joint venture company between Fenix and Newhaul leader Craig Mitchell
- The transport contract is valued at $360 million over the approximately six-year life of mine
- Works are expected to commence in December, in line with the project development timeline
- On the market this afternoon, Fenix is down 6.45 per cent and trading for 14.5 cents per share
Fenix Resources (FEX) has executed its road transport contract for its Iron Ridge Project with Fenix Newhaul.
The transport contract is valued at $360 million over the approximately six-year life of mine, which is in line with Fenix’s budget estimates.
Fenix Newhaul has already ordered prime movers and trailers for the project and secured necessary funding for equipment
It’s expected that works under the contract will commence in December, in line with the project development timeline.
Fenix Newhaul is the incorporated joint venture company established between Fenix and Newhaul’s founder Craig Mitchell.
Craig is also the former owner and founder of Mitchell Corp, a major supplier of transport and logistics services to the WA mining industry.
Fenix Newhaul is 50 per cent owned by Fenix and 50 per cent owned by Newhaul, an entity which is controlled by Craig.
“Road transport was quickly identified as the largest cost component for the commercialisation of Iron Ridge,” Fenix Managing Director Rob Brierley said.
“Fenix Newhaul plan to commence operations with a mix of sub-contract and owned fleet and they are actively recruiting for personnel, with most of their employees to be Geraldton-based,” he added.
On the market this afternoon, Fenix is down 6.45 per cent and is trading for 14.5 cents per share at 1:08 pm AEDT.