CuFe Ltd (ASX:CUF) has completed the restructuring transaction with major shareholder Gold Valley Group (GVG) to acquire the remaining 40% joint venture interest in the JWD Iron Ore Project (JWD) (increasing to 100%) and to restructure various other obligations that exist between the parties with respect to the Tennant Creek Joint Venture and the Yarram Joint Venture.
With the satisfaction of all conditions precedent, the agreement was completed on September 1, 2023, with the issue of 150 million ordinary shares.
CuFe now wholly owns the JWD Iron Ore Project, where sales volumes for the quarter to date have reached 113,000 tonnes of iron ore, placing the mine on track to achieve its highest quarterly sales volume.
The company has also advised repayment of the US$2 million debt facility drawn down in January this year, used to fund the restart of mining operations.
Iron ore prices on the rise
“We are pleased to conclude this transaction with Gold Valley Group which simplifies the operation of JWD by removing the joint venture structure and reduces or defers a number of cash outlays for the company,” CuFe executive director Mark Hancock said.
“Iron ore prices have moved up strongly in the last couple of weeks with improved demand and increased recognition that iron ore inventory levels held at Chinese mills, which are at the lowest levels for more than decade, will likely lead to a rapid restocking requirement if steel production continues to recover.
“Our production is tracking well which positions us to take advantage of the improvement in the market.”
The iron ore spot price currently sits at US$117 a tonne, having gained 5.41% in the last month and 18.18% in the last year.