Heads of Agreement gives AXE an energy boost

|

Published 25-SEP-2015 13:22 P.M.

|

1 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

The Board Of Leigh Creek Energy Limited (ASX:LCK) announced today that it had signed a Heads of Agreement with Archer Exploration Limited (ASX:AXE) that will enable the companies to work together to explore synergies within their respective Leigh Creek projects.

Archer has been pursuing development options for its magnesite deposit which is located just 20km from LCK’s Leigh Creek Energy Project (LCEP).

Its aim is to find possible development pathways for its magnesite project including the construction of a caustic calcined magnesia plant. To do this AXE requires an energy supply.

In developing its Leigh Creek Energy Project, an In-Situ Gasification (ISG) project at the site of its current open cut mine, LCK plans to diversify the customer base for the energy produced.

The strategic fit is evident.

Archer’s magnesite project, which is the largest of its type in the world, has the potential to become a major local energy consumer.

The basis of the Heads of Agreement is that AXE and LCK work together to investigate synergies including the sale of energy from LCP to Archer. The companies may also share infrastructure.

About Archer

Archer has 100% of 13 granted tenements all in South Australia covering almost 4,954 km2 over Eyre Peninsula, Leigh Creek, Burra, Wilmington and Australia Plains areas. A major resource for the company is Magnesite of which it currently holds 100% ownership over the world’s largest cryptocrystalline magnesite resource at Leigh Creek in South Australia, totalling 453 million tonnes with a grade of 41.3% MgO. At current estimates, AXE controls over 50% of the world’s Magnesite reserves.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X