Beacon Hill Resources has entered into an agreement to acquire, in stages, up to a 70% interest in the prospecting and exploration licence 3788L in Mozambique.
The agreement is between BHR, a wholly owned group subsidiary of the AIM- and ASX-listed coal producer, and Acácia Mineração. The licence has strong potential for pig iron mineralisation located in the Tete province.
“We have demonstrated that our Minas Moatize Coking Coal Project has the potential to be a Tier 1 cash producer and having commenced the wash plant development towards this target, we are also focusing on maximising our margin potential through the development of our business model and portfolio through vertical integration opportunities,” said Rowan Karstel, CEO of Beacon Hill Resources,
“Following many months of due diligence, we are confident that Licence 3788L represents a significant potential pig iron opportunity, and that this transaction provides us with an ideal, low cost opportunity to vertically integrate our portfolio and broaden our exposure to a broader group of steel related commodities.
“Maintaining low costs is very important to us and of particular importance is both the Project’s close proximity to our existing Minas Moatize project, which will enable us to utilise existing infrastructure and personnel, and the implications of our proposed co-generation project on processing costs. We will now proceed to complete our sampling work to understand the size of the deposit better and look forward to providing updates at the appropriate time.”