VANCOUVER, BRITISH COLUMBIA--(Marketwire -08/08/12)- THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Macarthur Minerals Limited (MMS.TO)(MMSDF) (the "Company" or "Macarthur") is pleased to announce that it has entered into a Capacity Reservation Deed and Market Sounding Participation Deed with Esperance Port Authority ("EPSL") for access to the proposed expanded Port of Esperance ("Port"), located in the Great Southern Region of Western Australia.
Macarthur's President, Chairman and CEO, Alan Phillips, commented that, "The Company has a clear strategy for the short term production at the Ularring Hematite Project. Timely expansion and access to the Port of Esperance export facilities is a critical aspect of development for the Project. The entry into the Capacity Reservation Deed and Market Sounding Participation Deed provides our project with a further step towards achieving our goals of early iron ore production."
Capacity Reservation Deed
As announced on December 16, 2010, Macarthur and EPSL entered into a Multi User Facility Access Deed, under which it secured commitment to a two (2) million tonne per annum ("mtpa") allocation, as part of the proposed expansion of iron ore export facilities at the Port in Western Australia.
EPSL has initiated a market sounding process for expansion of iron ore facilities at the Port. As part of the process of moving closer towards expansion of the Port, Macarthur has now entered into a Capacity Reservation Deed with EPSL for two (2) million tonne capacity reservation at the Port. ESPL has also entered into capacity reservation deeds with Cazaly Resources Limited (5 mtpa), Golden West Resources Limited (3 mtpa) and Cashmere Iron Pty Ltd (5 mtpa).
The capacity reservation is subject to the iron ore facility expansion occurring and commercial terms being entered into between Macarthur and the operator of the proposed facility.
Macarthur's proposed mining and export of hematite product is planned to coincide with the completion of the infrastructure corridor to the Port, being managed by the Western Australian Government, and the expansion of the Port itself.
On January 19, 2012 Western Australian Minister for Transport, Hon Troy Buswell BEc MLA, confirmed that export capacity at the Port will potentially increase by up to 20 mtpa in a staged plan, with the Western Australian Government formally committing to expansion of the Port.
The Company looks forward to working with EPSL and the appointed operator. The terms and conditions yet to be agreed between the EPSL and the Company are anticipated include access and usage changes and opportunities to increase Macarthur's export capacity allocation over time.
Market Sounding Participation Deed
Minister Buswell also said in January that the Western Australian Government would embark on a market sounding exercise to identify private sector interest in expanding the Port's capacity for iron ore exports. As announced by the Company in June 2012, EPSL requested expressions of interest for participation in the Government's market sounding process. This process enables the private sector to identify their interest in the Port expansion process.
The Company has entered into a Market Sounding Participation Deed with EPSL, to facilitate the Company's participation in the market sounding process.
The Company is participating in a marketing sounding exercise in two capacities: as a miner, and as one of a number of foundation customers forming part of a larger consortium whose members comprise experienced port developers, operators and project funders.
Macarthur Minerals Limited is an Australian-based resource development company currently focused on developing its Ularring Hematite Project, located in the Yilgarn iron ore district in Western Australia. The Ularring Hematite Project is located 110 km from rail infrastructure with a direct connection to the iron ore exporting Port of Esperance, Western Australia.
The Ularring Hematite Project has an indicated Mineral Resource of 54.46 Mt at 47.2% Fe and an inferred Mineral Resource of 25.99 Mt at 45.4% Fe (press release dated June 14, 2012; NI 43-101 Technical Report dated June 29, 2012). In addition, Macarthur's Moonshine Magnetite Project has an inferred Mineral Resource of 1.3 Bt at 30.1% Fe (press release dated December 15, 2010; NI 43-101 Technical Report dated March 25, 2011).
Positive Preliminary Economic Assessments were released to the market on the Ularring Hematite Project in November 2011 (press release dated November 21, 2011; Technical Report dated January 4, 2012) and the Moonshine Magnetite Project in February 2011 (press release dated February 7, 2011, Technical Report dated March 25, 2011).
On behalf of the Board of Directors,
MACARTHUR MINERALS LIMITED
Alan Phillips, President, Chairman & CEO
Caution Regarding Forward-Looking Statements
Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, "forward-looking statements") within the meaning of applicable securities laws. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things, the reliability of information prepared and/or published by third parties that are referenced in this press release or was otherwise relied upon by the Company in preparing this press release. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unforeseen technology changes that results in a reduction in iron or magnetite demand or substitution by other metals or materials, the discovery of new large low cost deposits of iron magnetite and the general level of global economic activity. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.