Non-Binding Alliance Raises Questions on Reedy Creek’s Development Certainty

• Non-binding Heads of Agreement signed between Pure Resources and SSH Group
• Collaboration focuses on exploration, feasibility, infrastructure, and production readiness
• Reedy Creek Garnet Project’s resource strike extended to 3.3 km
• SSH to lead initial project engagement and mining scenario planning
• Exclusive negotiation period planned for life-of-mine operations contract

Strategic Alliance Announcement

Pure Resources Limited (ASX:PR1) has formalised a strategic alliance with SSH Group Ltd (ASX:SSH) through a non-binding Heads of Agreement, marking a pivotal step in advancing the Reedy Creek Garnet Project. This partnership is designed to accelerate the project’s development timeline and bolster operational capacity by leveraging the combined expertise and resources of both companies.

The alliance outlines a collaborative framework spanning geological assessments, resource modelling, feasibility studies, regulatory approvals, infrastructure development, and the transition to full commercial production. SSH Group will play a leading role in initial project engagement, including site operations and mining scenario planning, to identify early revenue opportunities and optimise project execution.

Project Context and Potential

Located adjacent to the Great Northern Highway and approximately 280 kilometres from Wyndham Port, the Reedy Creek Garnet Project benefits from strategic logistics access to Asian and global markets. The project’s Mining Lease M80/416, valid until 2038, covers a garnet skarn deposit whose strike length has recently been extended from 1.1 kilometres to 3.3 kilometres, underscoring its significant resource potential.

This extension, announced in December 2024, enhances the project’s attractiveness and underpins the rationale for the alliance. The collaboration aims to refine resource models and accelerate feasibility and planning phases, positioning the project for a timely Final Investment Decision (FID).

Alliance Principles and Future Outlook

The alliance is structured around an Initial Project Engagement (IPE) contract, where SSH will provide internal resources to support the FID process. Upon completion, both parties will enter an exclusive negotiation period to establish terms for a life-of-mine, whole-of-site alliance-style operations contract, subject to mutual agreement.

Pure Resources’ Executive Chair, Patrick Glovac, emphasised the strategic value of the partnership, highlighting its role in enhancing operational and execution capabilities. SSH Group’s CEO, Daniel Cowley-Cooper, echoed this sentiment, expressing enthusiasm about contributing to the project’s accelerated development and positioning SSH as a key execution partner.

Implications for Stakeholders

This alliance signals a proactive approach by Pure Resources to de-risk and expedite the Reedy Creek Project through collaboration rather than solo development. For investors, the partnership offers a pathway to potentially faster project milestones and improved operational efficiency. However, the non-binding nature of the Heads of Agreement means that definitive terms and commitments remain subject to negotiation and future agreements.

As the project advances toward the FID, market participants will be watching closely for updates on feasibility outcomes, financing strategies, and the formalisation of life-of-mine operational contracts. The alliance could serve as a blueprint for how mid-tier mining companies leverage partnerships to unlock value in resource projects.

Bottom Line?

The Pure-SSH alliance sets the stage for a faster, more collaborative push toward commercialising Reedy Creek’s garnet resources.

Questions in the middle?

• What are the specific timelines for the Final Investment Decision and subsequent negotiations?
• How will financing for the Reedy Creek Project be structured under this alliance?
• What operational synergies can SSH bring to reduce development risks and costs?