Macro Metals Divests KCM Mining and Agbaja Iron Ore Project to Focus on WA Assets

Macro Metals (ASX: M4M) has reached an agreement with industrial and mining investment firm RSIN Nigeria to divest its subsidiary company KCM Mining, which owns the Agbaja iron ore project in Kogi state.

RSIN will pay US$5.6 million for the acquisition including a US$700,000 escrow down payment and a US$350,000 12-month holdback, with net proceeds to Macro of approximately A$5.1m after costs.

The divestment will support the advancement of Macro’s Western Australian projects and the growth of its mining services business in a non-dilutionary manner.

RSIN is backed by China’s RSIN Group, which has operated mining, mineral processing, smelting, and steel manufacturing projects in Nigeria for almost 20 years.

Conditions of Sale

Completion of the divestment is subject to conditions including confirmation that KCM’s rights to its proprietary metallurgical processing technology are validly held.

The company will also need to confirm that all necessary regulatory approvals and clearances by the governments of Nigeria and People’s Republic of China have been received.

A community development agreement between KCM and the Agbaja community covering items such as local employment, training, and capacity building will be extended to December 2031.

This will provide continuity for local stakeholders through the next phase of the project’s development, and ensure an enduring relationship between KCM, community leaders, and Nigeria’s state and federal governments.

Agbaja Project Location

The Agbaja project is located on the Agbaja Plateau, which hosts an extensive, shallow, flat-lying channel iron deposit and a probable ore reserve of 205 million tonnes grading 45.7% iron.

Mineral resources on the plateau are estimated to total 586 million tonnes at 41.3% iron, comprising an indicated 466 million tonnes at 41.4% and an inferred 120 million tonnes at 41.1%.

Macro has advanced the Agbaja project through more than a decade of investment in exploration and resource definition drilling, pre-feasibility studies, environmental and social impact assessments, and trial mining.

It also conducted a long-term metallurgical research program that developed technology based on oxygen injection to reduce the in-situ phosphorus in the project ore to levels suitable to produce an acceptable quality steel product.

The value created over this period is thought to extend well beyond the project’s financial metrics.