Fenix Resources Ltd (ASX:FEX) chairman John Welborn chats to Proactives Elisha Newell after the iron ore stock acquired fellow ASX-lister Mount Gibson Irons Mid-West assets.
Fenix is picking up the Shine Iron Ore Mine, which is currently on care and maintenance but boasts a 15-million-tonne iron ore resource, as well as two storage sheds at the pre-eminent Geraldton Port.
Welborn calls the transaction a game changer, noting it would bolster Fenixs position in WAs iconic iron ore industry.
These acquisitions are a transformational event for Fenix and will drive material economies of scale, provide flexibility to expand iron ore production and operate new projects concurrently, he told the market on Thursday.
"Since 2003, Mount Gibson has mined and shipped more than 50 million tonnes of iron ore in the Mid-West using robust rail and port infrastructure.
"We are delighted to continue this successful regional legacy and to have Mount Gibson as a significant shareholder as we work to create exceptional future value."
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Fenix Resources Ltd
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