GWR Advances Prospect Ridge Drilling, Secures $2.53M Wiluna Royalty, Eyes WA Acquisition

Wiluna Iron Ore Royalty Income and Terms Update

GWR Group Limited has reported receipt of $2.53 million in royalties from the Wiluna Iron Ore Project through the end of February 2025. This income reflects iron ore production and sales by Gold Valley West Wiluna Pty Ltd under a binding sale agreement. In response to prevailing iron ore market conditions, GWR and Gold Valley agreed to amend the royalty rates effective 1 April 2025. The revised royalty structure introduces a sliding scale tied to the IODEX 62% iron ore price benchmark, ranging from zero payment below USD 100 per tonne to a maximum of A$2.00 per dry metric tonne above USD 115. This adjustment aims to balance market realities with ongoing revenue generation for GWR over the next two years.

Progress at Prospect Ridge Magnesium Project

Exploration at GWR's 70%-owned Prospect Ridge Magnesite Project in northwest Tasmania continues to advance. The company recently completed a second phase diamond drilling program at the Arthur River deposit, comprising six holes totaling 742 meters. Assay results from this program remain pending, with market updates expected once available. The potential third phase of drilling, which could add up to 21 holes and include reverse circulation methods, awaits review of these results. Prospect Ridge holds an inferred mineral resource estimate of 25.1 million tonnes at 42.4% MgO, ranking it among Australia's largest magnesite inventories. Collaborative research with the University of Tasmania and CODES is ongoing, focusing on metallurgical improvements and deleterious element removal.

Strategic Investments and Market Position

GWR maintains a robust financial position with $39.6 million in cash reserves and a significant equity stake in Tungsten Mining NL (ASX:TGN), holding 177.5 million shares valued at approximately $16 million. The company underscores its positive outlook on tungsten, citing recent Chinese export restrictions that are expected to tighten global supply and support price appreciation. This strategic holding aligns with GWR’s focus on critical minerals with strong demand fundamentals.

Active Pursuit of Growth Opportunities

In line with its strategic growth objectives, GWR is actively conducting due diligence on potential acquisitions, including a major transaction in Western Australia. The company has submitted a non-binding indicative offer and is rigorously evaluating projects that offer near-term cash flow and exploration upside. This disciplined approach reflects GWR’s commitment to securing high-quality assets that complement its existing portfolio and enhance shareholder value.

Corporate and Operational Highlights

During the quarter, GWR issued 2.39 million new shares following the vesting of performance rights, including allocations to key directors. Operating cash flow remained positive at $2.25 million, supported by royalty receipts and disciplined expenditure. Exploration and evaluation spending totaled $197,000, focused on advancing drilling and metallurgical studies. No mining development or production activities were conducted during the period.