Perth-based base metals miner Fox Resources has signed a non-binding funding agreement with a Chinese co-operative, making a significant step towards restarting mining at the Radio Hill nickel-copper project in the Pilbara.
Fox today announced it had signed a memorandum of understanding with Jiangxi Jiangli Sci-Tech Co to finalise $30 million of funding for the initial phase of redeveloping the Radio Hill Mine, located 35 kilometres south of Karratha.
In return, Fox will provide Jiangli with 100 per cent of the nickel and copper sulphide concentrates produced from Radio Hill.
Fox plans to mine an inventory of six million tonnes of mineralised ore over a nine-year mine life.
The mine has been in care and maintenance since 2008.
Interim chief executive Laurie Chew said the signing of the MOU was a significant milestone in the company’s plans to return Radio Hill to production.
“It confirms the potential of the project and reflects the culmination of many months of hard work optimising processes,” Mr Chew said in a statement to the Australian Securities Exchange.
“With the proposed funding arrangements now underway, we can look forward to the commencement of construction to develop the bacterial heap leaching project.
“We’re very pleased to have Jiangli’s support and look forward to working co-operatively with them.”
At 11:20AM (WST) Fox Resources shares were up 11.7 per cent, to 10.5 cents.
