In contrast to the trials and tribulation of the Australian Magnesium Corp fiasco in Queensland Australia, the Magnesium International SAMAG project has just signed a memorandum of understanding with Thiess to fund the project.
Under the agreement, Thiess will be awarded an exclusive engineering procurement and construction contract, thus contributing equity for the first module of the 84,000 tpa smelter.
The first module is schedule to be constructed and commissioned within 3 years from sign off and will have a capacity of 41,000 tpa. Work on module 2 will be started while module 1 is being commissioned and will produce 43,000 tpa.
The contract value for module 1 is valued at approximately $500 million. On top of this Thiess will contribute $20 million in equity, when the deal is finalised.
Thiess will become one of the cornerstone investors in the project, and the signing of the memorandum marks an important milestone in the project. Magnesium International hope to raise $80 million in equity and a further $150 million from on-market sources to get the project up and running.
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