Fenix Resources takes full ownership of haulage transport business
Fenix Resources, an Australian iron ore producer, has taken full ownership of Fenix-Newhaul by closing the previously announced acquisition of the remaining 50% stake in the mid-west haulage business in Australia from its joint venture (JV) partner Newhaul.
By taking full ownership of Fenix-Newhaul, Fenix Resources becomes a fully integrated logistics and mining company with its portfolio featuring the Iron Ridge iron ore project, a haulage transport operation, and bulk export facilities at Geraldton Port.
Fenix Resources had earlier said that full ownership in the haulage transport business will cut down its C1 free on board (FOB) cash costs by nearly AUD 10 per tonne to enable the company to target total C1 FOB cash costs of around A$70/wmt.
The company signed the deal last month. As per its terms, Fenix Resources made an upfront payment of AUD 16.5 million, comprising AUD 7.5 million in cash and 30 million of its shares to Newhaul.
Additionally, the iron ore producer will make contingent milestone payments to Newhaul in the form of up to 60 million shares based on meeting significant milestones that are directly linked to value creation for the company.