SYDNEY, AUSTRALIA: 21 January 2025, Australian copper producer and explorer, Austral Resources Australia Ltd (ASX: AR1), is pleased to announce the signing of a Memorandum of Understanding (MOU) with New Frontier Minerals (ASX: NFM) to form a strategic alliance. This collaboration aims to enhance production at Austral’s Mt Kelly processing facility through the potential processing of copper ore supplied by NFM.
Under the agreement, Austral will work closely with NFM to evaluate the suitability of ore from NFM’s NWQ Copper Project, including the Big One Deposit (Mineral Resource Estimate: 2.1Mt @ 1.1% Cu), for processing at the Mt Kelly facility. The alliance represents an opportunity to leverage both companies' assets and expertise to unlock significant value from the Mt Isa copper belt region.
Austral Resources’ Chairman, David Newling, commented:
"I would echo the comments of (NFM Chairman) Ged in relation to the positive outcome for both groups from this MOU. Whilst there is still some metallurgical work yet to be completed in relation to suitability of NFM’s ore for the Mt Kelly processing facility, the MOU is demonstration that the Company has assets that are attractive to third parties, and we would welcome others to the table as well.
The Mt Isa region is primed for consolidation in the copper industry, and Austral remains focused on these opportunities where it has the potential to add significant value for shareholders."
The alliance includes a framework for potential ore processing agreements, metallurgical test work, and further exploration to assess other prospective copper deposits within NFM’s project areas. The partnership not only facilitates a path to production for NFM but also allows Austral to potentially secure a new, consistent source of copper ore feedstock.
This agreement reinforces Austral’s commitment to maximising the value of its assets while contributing to the consolidation of the Mt Isa copper belt region.
Contact details:
Jane Morgan
Investor and Media Relations
[email protected]
