Magnum Mining and Exploration (ASX:MGU) enters MOU with Mitsubishi in Q4

• Magnum Mining and Exploration (MGU) share price is up 100 per cent over the last month
• The company has minted an agreement with Mitsubishi for the potential offtake of ore from its Buena Vista project in Nevada, USA
• MGU also continues to progress its relationship with two Chinese industrials to access a high-efficiency smelting technology
• Magnum is seeking to produce green pig iron for use in blast furnaces
• MGU shares are down 2.22 per cent, trading at 4.4 cents at 12:36 pm AEST

Magnum Mining and Exploration (MGU) has ended the June quarter with nearly $3 million cash on hand, and, none other than Mitsubishi now among its interested stakeholders.

That’s probably one reason why the company’s share price is up 100 per cent over the last month.

The company inked a memorandum of understanding (MOU) with the Japanese giant back in May, with the carmaker interested in taking Magnum’s ore away from the project once Buena Vista gets rolling.

High-grade iron ore was also recently confirmed at Buena Vista, sure to improve the outcomes of an ongoing update to its feasibility study.

Magnum is ultimately seeking to produce green pig iron for sale in Asian and North American markets, targeting blast furnaces.

To that end, the company has inked agreements with two Chinese players – Shandong Province Metallurgical Engineering (SDM) and Molong – to access licence rights for the HIsmelt patent application, the tech that Magnum wants to use.

HIsmelt was first figured out by Rio Tinto back in the 1980s. Rio and Molong became partners back in 2012.

Drilling results from an exploration campaign that kicked off mid-year are expected to be delivered at some point in Q1 FY24. Buena Vista has also seen US-based Chris Tanner, a renowned engineer, installed as project manager.

Magnum shares were down 2.22 per cent, trading at 4.4 cents at 12:36 pm AEST.