Australian iron ore miner Magnetite Mines has announced that it has inked a heads of agreement with JFE Shoji Australia Pty., a group company of Japanese steelmaker JFE Holdings regarding funding for the former’s Razorback iron ore project in South Australia.
Under the agreement, JFE Shoji will provide funding for the completion of the definitive feasibility study of the project in question in return for direct reduced (DR) grade magnetite concentrate offtake rights of up to 10 percent of the planned production from stage one of the project over a 15-year term, with an option to convert them into equity or a joint venture agreement in the project.
Both parties plan to sign a definitive agreement by January 31, 2025.