- Magnum Mining & Exploration (MGU) is set to acquire the Buena Vista iron ore project in the U.S. state of Nevada
- Through a binding agreement, the company will purchase the property for a combined $7 million in cash and shares
- Due to the $34 million in development already completed by previous explorers, all relevant permits required to develop the project have already been sought
- Alongside the acquisition, the company has appointed resource industry executive Simon Baldwin to its board of directors
- Magnum Mining & Exploration closed in the grey on Friday for 4.2 cents per share
Magnum Mining & Exploration (MGU) is set to acquire the Buena Vista iron ore project in the U.S. state of Nevada.
Through a binding sale agreement, the company will purchase the property for $7 million in cash and shares.
Promisingly, the project has already been progressively advanced by previous explorers, who have sunk around $34 million into the site over the past decade. As a result, all permitting required to develop the project have already been sought.
Once the deal is finalised, the company intends to update the site’s previous feasibility studies, capital expenditure and operating expenditure estimates, as well as explore potential future funding opportunities.
Alongside the acquisition, the company has brought on resource industry executive Simon Baldwin to its board, pending the relevant due diligence processes.
Before joining Magnum, Simon held the position of Head of Commercial and Vice-President Marketing at Oil Search and has previously worked with industry giants BHP and Woodside Petroleum.
Commenting on his impending appointment, Simon said he was very pleased to be joining Magnum at such an exciting time.
“It is very rare to be able to acquire such an advanced project in a high-profile commodity with a long potential production life. The transformation opportunity that the Buena Vista project provides this company is profound and I look forward to working with the existing board and team to deliver this value to shareholders,” he added.
Magnum Mining & Exploration closed in the grey on Friday for 4.2 cents per share.