Funding Tight as Heavy Minerals Pushes for Port Gregory Project Permits
Heavy Minerals Limited advances steadily on its Port Gregory Garnet Project, with the Pre-Feasibility Study nearing completion and critical permitting and sales groundwork underway.
- Port Gregory PFS progressing, completion expected Q1 2025
- Successful mining equipment trials inform project design
- Non-binding MoU signed for 15% future garnet production sales
- Five-year extension granted for key exploration licenses
- Company preparing Mining Lease Application and advancing permitting
Port Gregory Garnet Project Advances
Heavy Minerals Limited (ASX: HVY) has reported solid progress in the December 2024 quarter towards developing its flagship Port Gregory Garnet Project (PGGP) in Western Australia. The company’s Pre-Feasibility Study (PFS), led by IHC Mining with support from AMC, remains on track for completion in the first quarter of 2025. This study is pivotal, aiming to refine project economics, optimize mine design, and establish marketing and logistics strategies compliant with industry standards.
The PFS builds on prior scoping and preliminary economic assessments, incorporating new metallurgical testing and mining equipment trials. Notably, the Dynamic Force Crusher and Caterpillar D9 dozer trials were successful, providing valuable data to inform mining operations and cost estimates.
Strategic Partnerships and Permitting Progress
In a significant commercial development, Heavy Minerals executed a non-binding Memorandum of Understanding with Melbourne-based garnet distributor ABSS for the sale of 15% of future PGGP production. The company is collaborating closely with ABSS to finalize logistics, including product bagging specifications, targeting the domestic market.
Permitting efforts have also advanced, with environmental consultants MBS Environmental and hydrogeological experts Rockwater completing baseline assessments and preparing strategies to support the Mining Lease Application. The application itself is nearing submission, updated to reflect the latest PFS design parameters. Engagement with the Department of Energy, Mines, Industry Regulation and Safety (DMIRS) is anticipated in the first half of 2025.
Exploration and License Extensions Support Growth
Heavy Minerals secured a five-year extension on all its exploration licenses, including the Red Hill project tenement, which is critical for the company’s growth pipeline beyond Port Gregory. Positive land access negotiations have opened the door for potential new garnet resource targets, with sampling planned for 2025 pending access approvals.
Financial Position and Funding Outlook
Financially, the company ended the quarter with a modest cash balance of $45,000. However, it expects to receive a final $395,000 installment from its Tranche 1 syndicated royalty funding in February 2025. Heavy Minerals has already initiated a Tranche 2 royalty raising to secure funds necessary for completing the next study phase and advancing towards a Final Investment Decision (FID). The company also retains an unused At-The-Market (ATM) facility, providing additional financing flexibility if required.
Executive Chairman Adam Schofield emphasized the company’s focus on securing project funding and distribution agreements over the coming quarters, underscoring the PFS completion as a critical milestone that will set the stage for the Feasibility Study and eventual project development.
Bottom Line?
As Heavy Minerals approaches the PFS completion, the company’s ability to secure funding and finalize sales agreements will be decisive for advancing Port Gregory towards production.
Questions in the middle?
- What will the final PFS reveal about project economics and capital requirements?
- How will Heavy Minerals structure its upcoming royalty funding to balance dilution and control?
- What are the timelines and potential hurdles for obtaining the Mining Lease and environmental permits?
