SYDNEY, AUSTRALIA: Magnum Mining and Exploration Limited (ASX:MGU) has entered into a binding share purchase agreement (Agreement) to acquire 100% of the issued capital of Appalachian Iron Inc, an entity incorporated in the state of Delaware.
In consideration for the acquisition, Magnum Mining and Exploration will issue 30 million performance shares to Mr Goodman, the sole director and shareholder of Appalachian Iron.
Appalachian Iron is a party to a license agreement with Molong Petroleum Machinery Company (an entity incorporated in China) (Molong) pursuant to which it has the right to elect to enter into a future formal process agreement to utilise all intellectual property, information and data relating to the HIsmelt iron ore process, as well as Molong providing technical services and key equipment to Appalachian Iron in order to produce green pig iron in the United States.
The company is seeking to utilise this acquisition to integrate the HIsmelt Process into its Buena Vista Magnetite Project in order to transition towards operating an integrated mining and production facility for low emission green pig iron products for both US and Asian steelmakers.
It is proposed that the HIsmelt Process will replace the Company’s previously announced strategy to utilise a rotary kiln to produce green pig iron products.
Commenting on the acquisition and the proposed West Virginia Project, Magnum’s CEO Neil Goodman said: “I look forward to continuing to advance Magnum’s Buena Vista Magnetite Project and to progress the West Virginia Project from its current conceptual stage, to develop a project that will be complementary to our existing project. The West Virginia Project is ideally suited to serve the US steel plants located in the eastern half of the US, whereas the Buena Vista Magnetite Project is equally well suited to serve the western half of the US and Asia.”