Magmatic Resources Attracts Investment From Fortescue Ltd For Myall Copper-Gold Project

Magmatic Resources Ltd (ASX: MAG) has attracted FMG Resources Pty Ltd as a farm-in and joint venture partner to the Myall Project in central west New South Wales.

FMG will cornerstone a 19.9% investment in the Magmatic raising at 0.04884 per share at a 10% premium to the last VWAP price.

FMG Resources Pty Ltd is a wholly-owned subsidiary of the $80 billion capped Fortescue Ltd (ASX: FMG).

Under the deal, Fortescue will spend up to $14 million over six years to earn up to a 75% joint venture interest in the project.

David Richardson, Magmatic executive chairman, commented: “Myall has many of the signatures of a Tier 1 copper-gold deposit.

Magmatic has recognised the need to partner with a major to further advance the project following the maiden resource.”

Resource base

Recent exploration at Myall has focussed on the Corvette and Kingswood Prospects.

These have an initial resource estimate of 110 million tonnes at 0.33% CuEq containing 293kt Cu, 237koz Au & 2.8Moz Ag.

The Myall Project covers the northern extension of the Junee – Narromine Volcanic Belt, located 50 kilometres north and along strike from the Northparkes copper-gold mining district.

The investment will allow Magmatic to advance the company’s other two projects at Wellington North and Parkes.

These are strategically located near Alkane Resources Ltd’s (ASX: ALK) Boda-Kaiser deposits and Tomingley Gold Operations respectively.

Ten years ago, Magmatic completed the acquisition of an advanced gold-copper portfolio in East Lachlan from Gold Fields Limited.

Gold Fields had completed a major phase of target generation across four main projects (Wellington North, Parkes, Myall, Moorefield).

It identified over 60 targets.

Highlighting the potential of the area, the East Lachlan has an endowment of more than 80 million ounces of gold and 13 million tonnes of copper.

It is home to Newcrest Mining’s Cadia Valley District, which includes the Cadia East Mine.

This is Australia’s largest gold mine and one of the world’s most profitable.

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