Overview

Newland Global Group is delighted to present an investment opportunity, on behalf of our client, within the mining sector, for an Iron Ore mining project in South Australia.

Our client owns significant Magnetite Iron ore mining project located in South Australia and carries Government approvals and support for its development. The company has a confirmed JORC resource of over 1 billion tons. To date the shareholders have expended over AUD$30 million in advancing this project to its present investable stage.

The Executive team are very experienced with multiple years in mining and processing to ore concentrate, having previously established many large-scale ore mining operations in the past.

This project is very attractive; the resultant iron ore concentrate will be amongst the highest available in Australia @ approx.70%. By comparison the standard Western Australian Pilbara region’s product is 62%. Because of the high concentration, the product will attract a premium price. This high ore quality product is very attractive to the Middle East and Asian Pellet markets.

The ore body is located within soft rock with an average recoverable iron (Fe) content of 25% to 30%; this together with the introduction of “dry processing technology” from Germany, will result in a significantly reduction the operating costs, with little reliance upon water for processing.

This mine is well situated, with proximity to existing transport infrastructure flowing directly to port facilities. The average annual production capacity of 20 million tons is already covered by off-take letters of intent from existing steel mills. Starting small at 1.5 million tons per annum, this project will be ramped up to approx. 25 million tons over the initial years of the mine’s operation.

A low startup capital base can be achieved via the usage of existing infrastructure, the ‘Dry Grinding’ technology and off-balance sheet financing of equipment and plant through foreign export finance from offshore equipment manufacturers. Due to the nature of the ore processing, mining processing expenses will see a lower total capital cost for this mine at approx. USD$200 million.

Exit Strategy

The company would be looking for a trade sale or an IPO within 4/5 years