The Company has secured a strategic alliance with Thiess by entering into a non-binding Letter of Intent (LOI) which will see the companies work together to deliver an optimal mining solution for the Hillside Project Once this solution is completed the plan is to enter into a Mining Services Contract, targeted for late CY2022 The benefits to this type of approach are to mitigate critical risks for a growing mining company with a large-scale greenfield development.
Thiess has shown genuine willingness to join the Company and drive down Project costs, including:
Developing appropriate and flexible mining equipment options The early integration of personnel to assist with the Project planning including optimal Mine Infrastructure Area (MIA) layouts, and Utilisation of Thiess' proven HSE systems to further de-risk the Project with a planned commencement in early 2023.
Commenting on the non-binding Letter of Intent, CEO
Since
The benefits for a greenfields development like Hillside being performed by a suitability experienced and qualified mining contractor is to mitigate critical risks including:
The mining contractor's buying power to either secure new mining fleet and reduce lead times or to enable the use of the contractor's existing fleet inventory at commencement
Experience with specific knowledge of operating in
Recruitment and mobilisation of a mining team, including proven industrial relations management
Development of proven management and training systems (including integration of mining HSE systems)
Flexibility to procure material input costs more directly - for example, consumables such as fuels
Optionality of leveraging the contractor's presence on site to tender for non-MIA works such as general roads, civil drainage and pre-development work programs.
Rex will now work with Thiess to develop and agree pricing and contract terms before entering into a Mining Services Contract for the Project. The anticipated timing for finalising the Contract is the end of the fourth quarter CY2022. Target timeframes are indicative and not binding, and may be subject to adjustment as the parties progress the discussions.
Contact:
Peter Bird Media
EGM Investor Relations & Business Development
T: +1300 822 161
T: +61 3 9068 3077
T: +1300 822 161
T: +61 3 9068 3077
M: +61 438 871 995
M: +61 419 372 210
E: rex@rexminerals.com.au
E: gcollery@rexminerals.com.au
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