Elmore achieves ‘practical completion’ of Peko magnetite operation acquisition
Elmore expects to ship about 30,000t of magnetite concentrate produced at Peko through the Port of Darwin early next week.
Elmore (ASX: ELE) has reached “practical completion” of its purchase of the Peko iron ore project in the Northern Territory and will operate it as the full owner moving forward.
This includes Elmore completing “all necessary undertakings and actions” to settle the share purchase agreements and the associated requisite finance.
As part of this, Elmore has given the vendors Oz Professionals the first two principal payments totalling $400,000.
Prior to the purchase being officially completed, the Northern Territory Government will finalise its stamp duty assessment.
The company acquired Peko after working on the design, build and commissioning of its operations over 12 months as a contractor.
Initial operations at Peko are focusing on producing a high-grade magnetite concentrate. However, the company plans to use its plant and equipment to generate copper, cobalt and gold from a tailings deposit within the wider ground.
Commenting on the practical completion of its Peko purchase, Elmore managing director David Mendelawitz said he is pleased to confirm the major milestone has been achieved.
Peko iron operation
In a market update earlier this week, Elmore revealed about 30,000 tonnes of high-grade magnetite from Peko was either on its way to the Port of Darwin or awaiting to be loaded on a ship.
Product pricing has been confirmed at $202 per dry tonne of material (give or take for grade corrections).
A ship was due to arrive today and once loading of the ore has been completed, it is expected to depart early next week.
This will follow a maiden shipment in the December quarter of last year which comprised 22,500t of magnetite that was exported to China.
Royal Advance (Hong Kong) purchased the product under a previously announce offtake agreement in July last year.
At nameplate production, about 350,000t per annum of magnetite will be produced from Peko.
Mr Mendelawitz said the company is on track to reach its magnetite production targets at the mine in the “near future”, as it continues to “build scale and reliability” in its operations.
While magnetite production ramps up, Elmore also expects to begin generating cobalt through its new copper-cobalt plant before the end of the current half.