- GWR Group (GWR) pens a deal with Jindalee Resources (JRL) for a 70 per cent interest in its Prospect Ridge Magnesite project in Tasmania
- GWR’s wholly owned subsidiary, Tasmanian Magnesium will take its share of Jindalee’s 100 per cent owned project, which came with a $1 million price tag, payable in cash and GWR shares
- Following GWR’s signing of the binding term sheet with Jindalee, the company resolved to raise $2 million before costs via a placement to fund work programs for the project
- GWR says it believes the project will provide it with the opportunity to enter the “green” and EV space
- GWR dips 2.78 per cent, trading at 17.5 cents while Jindalee Resources is up 0.87 per cent, trading at $2.32 at 2:30 pm AEDT
GWR Group (GWR) has penned a deal with Jindalee Resources (JRL) for a 70 per cent interest in its Prospect Ridge Magnesite project in northwest Tasmania.
GWR’s wholly-owned subsidiary, Tasmanian Magnesium will take its share of Jindalee’s 100 per cent owned project, which came with a $1 million price tag, payable in cash and GWR shares.
As part of the deal, Tasmanian Magnesium is required to spend a minimum of $2 million and complete a scoping study of the magnesite project within five years.
Magnesite is the principal ore for magnesium – often referred to as the “green metal,” which is the lightest structural metal on earth.
The project is 51 square kilometres in size and contains two deposits, the Arthur River and Lyons River deposits, which contain the third-largest magnesite inventory in Australia.
Following GWR’s signing of the binding term sheet with Jindalee, the company resolved to raise $2 million before costs via a placement to assist with working capital and fund work programs for the project.
“The GWR team has reviewed a number of projects to that will move the company into the “green sector,” and we believe the advanced Prospect Ridge Magnesite project provides an excellent opportunity to enter the “green” global magnesium market whilst enabling GWR to apply our experience in bulk commodity mining and tap into our network of offtake partners and end users,” said GWR Chairman, Gary Lyons.
“The project will provide GWR with the opportunity to enter the “green” and EV space with potential for exposure to the high-capacity, fast charging, rechargeable magnesium-ion battery market.”
“The project has seen a substantial amount of work, including diamond drilling, metallurgical and hydrological test work, and feasibility studies.”
GWR dipped 2.78 per cent, trading at 17.5 cents while Jindalee Resources was up 0.87 per cent, trading at $2.32 at 2:30 pm AEDT