Allup Silica has beefed up the leadersip team tasked with producing a prefeasibility study (PFS) on its mineral sands project in Western Australia's Eucla Basin by installing long-time mining industry professional Simon Finnis as its new managing director.
The company has also added experienced mineral sands operator Peter Secker as a non-executive director as it ramps up its plans to develop the McLaren valuable heavy mineral sands project. Now-former managing director Andrew Haythorpe will also immediately move into a new role as executive director to continue his work on the burgeoning project.
Finnis has more than 35 years of experience in the mining sector, including a decade working in the in mineral sands industry. His track record includes leading the Pooncarie mineral sands project in New South Wales and the $650 million Grand Cote mineral sands project in Senegal.
Secker also has a long history in the mineral sands industry and is particularly known for his role in designing and operating the Cooljarloo mineral sands mine near Cataby in WA. With 40 years of experience, Secker has been at the helm of several greenfield projects across Australia, China, Africa, Canada and Mexico, raising more than $2 billion in capital throughout his career.
Allup Silica executive director Andrew Haythorpe said: "The McLaren Project presents an excellent opportunity for Allup Silica to fulfill its plan of moving into minerals production. There has been significant, high-quality previous work done and the high value of titanium minerals means this opportunity presents a quicker and higher-confidence pathway for Allup Silica and its shareholders.”
Just a fortnight ago, Allup nabbed the prize McLaren project for $150,000 in cash and a 1.5 per cent royalty. With excellent road, rail and port access at Esperance, it currently hosts a 280 million-tonne resource running at 4.8 per cent heavy minerals and has had $13 million spent on it to date.
As part of the acquisition deal, 4.24 million shares in Allup will also be issued to the vendors once certain conditions are met pertaining to the PFS. It includes confirming a capex of less than $110 million, an operating expense of $215 a tonne and a pre-tax net present value (NPV) of more than $800 million, which may perhaps provide an insight into how much management believes the project is worth.
Bull ‘N Bears recently noted that it is not often a sizable brownfields site with a resource at surface and close to quality infrastructure becomes available at bargain basement prices. But when it does, investors usually sit up and take notice.
Now, Allup can add a strengthened and revitalised leadership structure to that list of positives as the company pursues its quest to capitalise on a robust mineral sand market.
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By James Pearson
