Fenix Resources Finalises Acquisition of Mid-West Iron Ore and Port Assets

THE BOURSE WHISPERER: Fenix Resources (ASX: FEX) added the strongest string yet to its iron ore bow with the acquisition of Mount Gibson Iron Limited’s Mid-West iron ore, port and rail assets near Geraldton in Western Australia.

The Mid-West assets Fenix has acquired include the Shine iron ore mine, two on-wharf bulk material storage sheds at Geraldton Port, two rail sidings at Ruvidini and Perenjori, and mining assets and obligations at the Extension Hill iron ore mine.

Fenix itemised the benefits the acquisition of the iron ore and port assets provides to be:

• reduce the cost of the company’s existing Iron Ridge production;
• expand production from Iron Ridge;
• re-commission the Shine iron ore mine as a second production asset;
• create a substantial new revenue generating business from the provision of logistics solutions to existing and future Mid-West bulk commodity producers; and
• benefit from the expected growth in bulk commodity production and export in the Mid-West.

“Acquiring Mount Gibson’s Mid-West iron ore and port assets is a game changer,” Fenix Resources chairman John Welborn said in the company’s ASX announcement.

“We are extremely excited about the start of a new chapter for Fenix.

“We are delighted to be continuing the successful legacy of Mount Gibson in the Mid-West and to have their support as a large shareholder.

“This transformational event for Fenix will drive material economies of scale, provide flexibility to expand iron ore production and operate new projects concurrently.

“In expanding a mine-to-port logistics solution for ourselves and other producers in the Mid-West, we also create employment opportunities which will strongly support regional economic growth and create exceptional shareholder value.”