Here's an extract from the last quarterly .. take a look at that report for more details:
3.0 MT CUTHBERT/MT WATSON PROJECT Summary In October 2006, the Company announced that the Board had formally resolved to commence copper production at the Mt Watson/Cuthbert Project, and that the development was fully funded with Matrix having executed a funding and off-take agreement with Glencore International AG (“Glencore”). • Mining will commence at the Mt Watson deposit, with treatment at Matrix’s Mt Cuthbert plant (the “Mt Watson/Cuthbert Project” or “the Project”), utilising existing plant and infrastructure owned by Matrix. • Copper cathode production is expected to commence no later than 3rd quarter of 2007. • Stage One production levels will be 5,500 tpa of Grade A LME copper cathode, with a planned production rate increase up to 10,000 tpa in a proposed Stage Two development. • Stage One pre-production project capital expenditure is estimated at $10 million, with the steady state annual net operating cashflow estimated to be in the order of $20 million. • Stage Two capital expenditure for the plant upgrade is estimated at less than $5 million, with the upgrade resulting in substantially increased annual net operating cashflow. • Glencore has agreed to provide equity funding of $2.5 million at a price of 6 cents per share, and a debt facility of $10 million, subject only to the satisfaction of certain legal due diligence. • Matrix has also reached in-principle agreement with Hartleys Limited to raise a further $2.35 million by way of a placement of Matrix shares at a price of 5.3 cents per share. Matrix’s two largest shareholders Independence Group NL and the LinQ Resources Fund have agreed to participate in the placement. Project Economics The development of the Mt Watson/Cuthbert Project presents highly favourable economics based on current Westpac Bank copper forward curves (see note). This is due to the ability to achieve copper production at Mt Cuthbert in a very short time frame, low capital costs and favourable metallurgical characteristics of the Mt Watson resource. It is envisaged the Project will be developed in two stages as described below, with Stage One now committed and early development works already underway.
So .... processing plant up by March o7 and fist copper cathode by 3rd quarter 2007.
H
MRX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
