Joint Venture announcements

THE BOURSE WHISPERER: As they say in the classics; it’s better to have 50 per cent of a project than 100 per cent of no project.

Thiess Sedgman Projects JV awarded $64m contract

Sedgman Limited (ASX: SDM) announced the Thiess Sedgman Projects Joint Venture (TSP) has been awarded a $64 million contract for the Design and Construction of a 7.5 million tonnes per annum (ROM Feed) modular iron ore processing plant at Fortescue Metals Group’s (ASX: FMG) Solomon iron ore mine in Western Australia.

The company explained the Modular Plant to be is an important part of Fortescue’s vision of operating the Solomon mine without the need for a new wet plant at the Firetail OPF.

The Modular Plant will be delivered by the TSP, a project specific joint venture established by Sedgman and Thiess Pty Ltd.

“The contract is the company’s first major iron ore project and represents a significant and successful milestone in its diversification strategy,” Sedgman CEO and managing director Peter Watson said.

“Sedgman and Thiess have an established track record of delivering coal process and materials handling projects over the last 12 years and we are excited to be able to broaden this relationship to the iron ore sector.
“The award of this contract followed an Early Contractor Involvement process and is testament to the process design and delivery capability that TSP was able to demonstrate to

“We look forward to delivering a successful outcome for the project and further strengthening our relationship with Fortescue.”

Aurora greets new shareholder, which enables new stake in Predictive

Aurora Minerals (ASX: ARM) has executed an agreement with African Lion 3 Limited.

African Lion will subscribe for around 15 million fully paid ordinary shares in Aurora for 5.9 cents per share, representing approximately 14.7 per cent of the shares on issue in the company (12.8 per cent post placement).

In turn, Aurora will acquire from African Lion some 67 million fully paid ordinary shares in the capital of Burkina Faso-focused gold exploration play Predictive Discovery (ASX: PDI) in consideration for one cent per Predictive share, representing approximately 17.2 per cent of the fully paid ordinary shares on issue in Predictive.

“The investment in Predictive represents our second strategic investment in gold exploration in West Africa and in particular Burkina Faso,” Aurora Minerals managing director Martin Pyle said.

“Predictive has built a prospective tenement package comprising the Bonsiega project in the Fada N’Gourma greenstone belt situated in the east of the country and along strike from the Samira Hill gold mine, located just inside the Niger border to the north-east.

“Aurora sees this as complementary to the objectives of Golden Rim Resources (Aurora has acquired 19.95 per cent of Golden Rim’s shares with outstanding loan of $1.35M), which is also exploring in Burkina Faso and significantly, in the same greenstone belt.

“As a cornerstone shareholder, Aurora looks forward to working with Predictive to unlock the potential of this highly-prospective jurisdiction.”

TNG signs three-way MoU

TNG Limited (ASX: TNG) has signed a wide-ranging three-way Memorandum of Understanding (MoU) with Hyundai Steel Co., Ltd, part of the Hyundai Automotive Group.

The company said the MoU establishes a potentially company-making funding, development and construction arrangement for its Mount Peake vanadium project in the Northern Territory.

The non-binding MoU – with Hyundai Steel and leading ferro-vanadium producer, Korean-based WOOJIN IND., CO., Ltd – was signed during a visit by a delegation comprising senior executives from both Hyundai Steel and WOOJIN to Perth.

The company said the MoU lays the foundations for TNG to enter into binding agreements with Hyundai Steel for the financing and development of Mount Peake.

“This is a breakthrough development, aligning TNG with one of the world’s largest and most successful steel companies which, in turn, forms part of one of Korea’s dominant industrial conglomerates,” TNG managing director Paul Burton said.

“Together with our strategic partner, WOOJIN, which is a major supplier of ferro-vanadium to Hyundai Steel, this gives the company direct access to one of the largest and most successful steel-making and industrial conglomerates in the world.

“Securing the backing of Hyundai Steel, potentially through a cornerstone investment in the company or the Mount Peake project, represents a major step forward for TNG and Mount Peake and gives us access to a powerful global conglomerate with the ability to assist us in funding and completing the Definitive Feasibility Study and, ultimately, financing and constructing the project.

“We have now established an impressive portfolio of global strategic, commodity and off-take partners led by Hyundai Steel and also including WOOJIN, POSCO, Gunvor Group and Global Pacific Partners.

“We are looking forward to working with all of these groups to finalise binding agreements covering all aspects of the financing, development and operations of Mount Peake.”