Macro Metals Expands with New Mining Services Division and Major Manganese Acquisition
M4M (M4M) Share Update July 2024 Monday 22nd
Macro Metals Launches New Mining Services Division and Acquires Major Manganese Assets
Macro Metals Limited (ASX:M4M) has announced the launch of its new mining services division and the acquisition of an 80% interest in three significant manganese projects in the Eastern Pilbara region of Western Australia.
Instant Summary:
- Macro Metals acquires 80% interest in Wandanya, Disraeli, and Midgengadge Manganese Projects.
- Launch of Macro Mining Services Pty Ltd to provide comprehensive mining services.
- Potential for high-grade Manganese Direct Shipping Ore (DSO) production in the near term.
- Significant drilling results from the Donkey Prospect indicate high manganese grades.
- Firebird Metals retains a 20% interest with an option to convert to a 1% royalty.
Acquisition Details
Macro Metals Limited (Macro) has entered into a binding agreement with Firebird Metals Ltd (ASX: FRB) to acquire an 80% interest in the Wandanya, Disraeli, and Midgengadge Manganese Projects, located in the Eastern Pilbara region of Western Australia. The acquisition involves a minimum aggregate expenditure of A$150,000 across the three projects within 12 months and at least 10 Reverse Circulation (RC) drill holes on each project.
Firebird Metals will retain a 20% interest in the projects, with the option to convert this interest into a 1% free on board (FOB) royalty on all product produced and sold from the projects. Should Macro decide to mine, an 80:20 Special Purpose Vehicle (SPV) will be formed, entering into a life-of-mine mining services contract with Macro's wholly-owned subsidiary, Macro Mining Services Pty Ltd (MMS).
Mining Services Division
Macro has launched Macro Mining Services Pty Ltd (MMS), which will provide all services across the entire pit-to-customer supply chain on a commercial, arms' length schedule of rates. MMS will leverage Macro's in-house exploration and fast-tracked development capabilities to acquire project equity interests in exploration assets of other mining companies that warrant development and provide comprehensive mining services.
Project Highlights
The Wandanya Project has the potential to deliver high-grade Manganese Direct Shipping Ore (DSO) product in the near term, consisting of three prospects: Wandanya, Donkey, and Crossroads. Significant drilling results from the Donkey Prospect include:
- 13m at 23.6% Mn from 1m (DKAT19), including 4m at 34.45% Mn from 6m
- 9m at 25.2% Mn from 1m (DKRC041), including 3m at 39.9% Mn from 3m
- 8m at 29.5% Mn from 10m (DKRC032)
- 6m at 29.8% Mn from surface (DKRC4)
- 5m at 40.8% Mn from surface, EOH in mineralisation (DKAT35)
Additionally, rock chip sampling at Crossroads and Wandanya prospects reported grades of up to 55.3% Mn and 54.55% Mn, respectively.
The acquisition and launch of the new mining services division are expected to significantly enhance Macro Metals' operational capabilities and revenue streams. The potential for high-grade manganese production in a rising market could positively impact the company's stock price. The strategic move to provide mining services to third parties will enable Macro to scale its operations more quickly and efficiently.
Investor Reaction:
Investors and analysts have reacted positively to the announcement, noting the potential for increased revenue from both the manganese projects and the new mining services division. The high-grade drilling results from the Donkey Prospect have particularly garnered attention, indicating strong future production potential.
Conclusion:
Macro Metals' strategic expansion into mining services and the acquisition of significant manganese assets position the company for substantial growth. Investors should monitor the company's progress in developing these projects and the performance of the new mining services division. The potential for near-term production and increased revenue streams makes Macro Metals a stock to watch.