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Fenix Resources Ltd (ASX:FEX)

ALERT: Price-sensitive ASX Announcement for FEX
Current share price for FEX : $0.260 -0.06 (-18.75%)+
Announcement
Release
1 Sep 2025 8:30AM
Price at Release
$0.320
Full Release
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Summary
Fenix Resources Ltd has entered into a significant 30-year agreement with Sinosteel Midwest Corporation, a subsidiary of China Baowu Steel Group, to mine and export iron ore from the Weld Range Project in Western Australia. This project includes a global JORC 2012 Mineral Resource Estimate of 290 million tonnes at a grade of 56.8% Fe. Fenix will pay Sinosteel Midwest Corporation a total of $60 million, distributed over two years, and additional royalties based on production rates and profit share. The Weld Range Right to Mine Agreement supports Fenix’s strategy to expand its mining operations and leverage its existing infrastructure for enhanced production capacity, aiming for a 10 million tonne per annum iron ore output. The company has committed to maintain a minimum production of 6 million tonnes per annum and is planning to integrate the project with its current operations at Iron Ridge and Beebyn-W11 mines. This development aligns with Fenix's goal to enhance its presence in the Mid-West region and strengthen its collaboration with Baowu, the world’s largest steel producer.
Key Points
  • Fenix secures a 30-year right to mine agreement for the Weld Range Project.
  • The project contains a Mineral Resource Estimate of 290 million tonnes at 56.8% Fe.
  • Total consideration of $60 million payable over two years, plus royalties.
  • Aims for 10 million tonnes per annum production capacity.
  • Commitment to maintain at least 6 million tonnes per annum production.
  • Incorporation of existing operations at Iron Ridge and Beebyn-W11.
  • Collaboration with China Baowu Steel Group, the world’s largest steel producer.
  • Feasibility study initiated for optimal project development.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.