Magnetite Mines Extends JFE Deal and Boosts Razorback Resources

Strategic Partnership Progress

Magnetite Mines Limited (ASX – MGT) has taken significant strides in advancing its Razorback Iron Ore Project, a cornerstone asset in South Australia's Braemar iron region. Central to this progress is the extension of the non-binding Heads of Agreement with JFE Shoji Australia Pty Ltd, a subsidiary of Japan's steel giant JFE Holdings, now extended to 31 December 2025. This extension provides additional runway for Magnetite Mines to align a second strategic partner alongside JFE, aiming to co-invest in the project's Definitive Feasibility Study (DFS).

Negotiations with this second potential partner are well underway, reflecting growing interest in Razorback's premium-grade magnetite concentrate, which is increasingly sought after by steelmakers targeting decarbonisation through Direct Reduction Iron (DRI) technologies. The collaboration with JFE, a key player in Japan’s steel industry, underscores Razorback’s strategic importance in the emerging green iron supply chain.

Resource Upgrade and Project Approvals

In a notable technical update, Magnetite Mines revised the Razorback Mineral Resource Estimate (MRE) by lowering the cut-off grade from 11% to 8% estimated Davis Tube Recovery (eDTR), aligning it with the Ore Reserve cut-off. This adjustment has lifted the Razorback MRE from approximately 3.2 billion tonnes to about 3.8 billion tonnes, and the company’s global mineral resource base from 6.0 to 6.6 billion tonnes, all classified as Indicated and Inferred under the JORC Code.

Meanwhile, the Mining Lease Proposal submitted to South Australia’s Department for Energy & Mining in March 2025 is progressing smoothly through the validity assessment stage, with no material issues reported. This regulatory milestone is critical for advancing Razorback towards development and eventual production.

Metallurgical Advances and Environmental Considerations

Magnetite Mines has also reported encouraging metallurgical testwork results from Bureau Veritas laboratories, demonstrating the ability to produce high-quality DR-grade iron concentrates with iron content between 68.8% and 70.4% using fresh water flotation. Tests using the company’s proprietary saline water flotation method yielded slightly lower iron grades but confirmed the potential for seawater processing, a significant environmental advantage in water-scarce regions.

While saline water processing requires further optimisation to reduce impurities, the company’s provisional patent application for this technology highlights its commitment to sustainable mining practices. Collaborations with Finnish equipment manufacturer Metso on filtration and washing tests further support the development of an environmentally responsible processing flowsheet.

Funding and Corporate Developments

On the financial front, Magnetite Mines drew down $1.04 million in two tranches from a $7 million unsecured convertible notes facility arranged with US-based C/M Capital Partners. This funding supports ongoing exploration and feasibility activities. The company has scheduled an Extraordinary General Meeting for 15 August 2025 to seek shareholder approval to refresh its placement capacity, enabling further capital raising as needed.

Exploration expenditure for the quarter was $0.37 million, focused on advancing permitting and resource development, with no active mining production yet. The company continues to engage with local Indigenous groups and government bodies, aligning project development with community and environmental priorities.

Outlook

Magnetite Mines is positioning Razorback as a long-life, premium-grade magnetite project that aligns with global steel industry trends towards decarbonisation and green iron production. The combination of resource growth, strategic partnerships, metallurgical innovation, and supportive regulatory progress paints a promising picture. However, the finalisation of binding agreements and further optimisation of saline water processing remain key next steps.