Magnum Mining Reaches Milestone in Funding Round for Green Pig Iron Project in Saudi Arabia

Magnum Mining & Exploration Ltd (ASX: MGU) has reached a major milestone in its pursuit of developing a commercial hot metal facility.

The company has entered into an agreement with V Capital Consulting Limited (NASDAQ: VCIG) and 2×1.Digital Private Limited to undertake a capital raising.

The raising will be no less than US$210 million to advance the Green Pig Iron Project in Saudi Arabia.

Best endeavors will be undertaken by the companies to fund the building of a HIsmelt plant that will see the planned production of green high purity pig iron by Midmetal.

The HIsmelt based technology has the capability to deliver green pig iron now, without the long and expensive process being experienced by other companies in the development of the hydrogen iron reductant pathway.

Neil Goodman, CEO of Magnum, commented:

“Magnum’s strategic culturing of the opportunity provided by the Midmetal alliance in Saudi Arabia is now coming to fruition.”

Funding details

As part of the funding program, Magnum will receive no less than US$10 million as working capital for its Buena Vista Project.

This is for the issue, subject to shareholder approval, of fully paid ordinary shares in Magnum up to a maximum interest of 19.9%.

Investors in the capital raising will receive ordinary shares in Midmetal to an aggregate interest of 50%.

The Midmetal connection

Midmetal is the vehicle for the project, and is currently 50% owned by Magnum and and its original Saudi investors.

The vehicle has secured a certification for funding of up to 50% of the costs of the project from the Kingdom of Saudi Arabia Government.

This is through the Saudi Investment Development Fund.

The Buena Vista Project connection

It is intended that the HIsmelt plant will use both high grade magnetite concentrate from Magnum’s Buena Vista Iron Project in Nevada, U.S., and mill waste from the All Steel plant in Saudi Arabia.

Renewable biochar from biomass sourced in Malaysia is the proposed iron reductant.

The technical feasibility of the project has been demonstrated.

The Buena Vista Project will comprise a mine that will use industry standard drill, blast, and shovel techniques.

Over A$40 million has been spent on the project over the past decade.

A refresh of the Feasibility Study in 2023 indicated that the iron ore can be concentrated to +68% Fe with <3% impurities.

The project is located in Churchill County which has a strong history of supporting mining developments.

 

 

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