Foyson Resources to sell Myrtle Springs for $1million

THE BOURSE WHISPERER: Recently-rebranded Foyson Resources has entered into an Option Agreement to sell the company’s interest in the Myrtle Springs magnesite tenements to Calix Limited for a Purchase Price of one million dollars.

“These arrangements are consistent with Foyson’s strategy of rationalising its minerals portfolio by divesting legacy non- core assets to realise cash, which can be used to continue the process of commercialising the company’s outstanding portfolio of resource assets in Papua New Guinea,” Foyson Resources chief executive officer Michael Palmer said in the company’s announcement to the Australian Securities Exchange.
Calix has paid Foyson a non-refundable Option Fee and will now commence its Due Diligence process over the Myrtle Springs tenements.

The Option arrangements allow Calix an exclusive period of five months to conduct Due Diligence.

Once Calix has completed its Due Diligence and is happy the parties will execute an Asset Sale and Purchase Agreement and settlement, which Foyson indicated is most likely to occur on or before 31 October 2012.

Myrtle Springs comprises two Mining Lease and two Mining Purposes Leases, situated in the Leigh Creek area in north western South Australia.

The tenements are currently part of Foyson’s magnesium smelter project that was proposed for Port Pirie in the early 2000s.

Foyson, under its previous moniker of Mil Resources, had maintained this interest as a magnesite mine, with ongoing contractual sales.

The project is a good fit for Calix in its business as a technology company which is commercialising its proprietary calciner technology.

The company’s core technology is a Catalytic Flash Calcination (CFC) Reactor that can heat a mineral in seconds to change its chemical property.

The resulting mineral has a range of global applications in diverse industries.

Calix is proposing to use magnesite and dolomite ore from Myrtle Springs as feed stock to a calciner and manufacturing facility with the end product being magnesium oxide board for use in the building construction industry.