Venturex and Atlas sign up for road show

THE BOURSE WHISPERER: Venturex Resources has entered into an agreement with Atlas Iron to establish a haul road linking the new Abydos mining operation to the existing sealed Marble Bar Road via Venturex’s access road route to the proposed Sulphur Springs Hub site.

Under the agreement, Atlas and Venturex will have shared access and capacity rights to the haul road to service and support Atlas’ Abydos mining operation and Venturex’s proposed Sulphur Springs Hub mining and processing operation.

The two parties further agreed to cooperate with each other in relation to investigating the potential for shared development of other infrastructure capacity in the region.

“Venturex welcomes this agreement with Atlas to create multi-user infrastructure to the mutual benefit of both parties,” Venturex Resources managing director Michael Mulroney said in the company’s announcement to the Australian Securities Exchange.

“It provides Venturex the opportunity to advance the infrastructure for the proposed Sulphur Springs development ahead of our requirements, and substantially reduce the future capital and operating costs.

 “We believe that this is a perfect example of regional cooperation assisting both parties in reducing development costs and minimising our environmental impacts.”

Key points in the agreement include:

Atlas will gain access to Venturex’s existing tenure for the planned access road to the proposed Sulphur Springs Hub site for the haul road route;

Atlas has six months to commence construction of the haul road; and

Atlas will manage and fund the design, construction and maintenance of the haul road;

On the commencement of construction at the Sulphur Springs Hub site, Venturex will pay to Atlas an agreed portion of the design and construction cost of the haul road and contribute to the ongoing maintenance costs on a pro-rata basis.

Disclaimer: The Roadhouse holds shares in Atlas Iron