Twiggy Forrest's FMG Resources has made a significant move into the highly prospective copper-gold region of central western NSW with a placement and funding deal. This deal could potentially result in FMG gaining control of the emerging Myall prospect owned by Magmatic Resources.
The Central West area already hosts major mining operations by companies like Evolution Mining, Newmont, and Alkane Resources. The agreement between Fortescue and Magmatic includes Fortescue taking a 19.9% stake in Magmatic and investing up to $14 million over six years to acquire a 75% stake in the Myall project.
The placement price is set at .04884 cents per share, with 75,946,151 shares to be issued, representing a 10% premium to Magmatic's last sale price. Magmatic's Myall project includes the Corvette and Kingswood prospects, both showing promising initial Mineral Resource Estimates.
Magmatic considers Myall to have Tier 1 potential and believes partnering with Fortescue will significantly advance the project. Additionally, the investment will enable Magmatic to progress its other projects, including Wellington North and Parkes.
David Richardson, Magmatic's Executive Chair, stated that Myall exhibits characteristics of a Tier 1 copper-gold deposit and emphasized the importance of partnering with a major player like Fortescue for further advancement.
FMG Resources already has joint ventures in other mining regions, including the East Patterson region in WA Pilbara and the Canobie copper-nickel prospect in northwest Queensland.
