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Corporate Spotlight

Alara's advanced development and early stage exploration projects in Saudi Arabia (Zinc-Copper) and Oman (Copper-Gold) provides an exciting mix of projects which supports the Company's strategy to unlock value for shareholders.
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Copper mining project


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ASX Announcement 15 March 2019

PERTH: Alara Resources Limited (ASX: AUQ) (Alara or Company) is pleased to announce that Al Hadeetha Resources LLC has entered a 60 million Euro Investment Agreement with SAMA Global Investment, headquartered in Doha, Qatar.

Under the agreement: 

  • SAMA will invest EUR 60 million (~AUD 96 million) into Al Hadeetha Resources LLC (Al Hadeetha) for development of the Washihi-Mazzaza Copper Project (the Project) repayable by Al Hadeetha; 
  • The investment will be applied principally to fund construction of mine-site infrastructure for a 1mtpa copper processing plant1 at the Project; 
  • Al Hadeetha may also utilise the investment funds to develop other projects as mutually agreed; 
  • An establishment fee of EUR 1 million (~AUD 1.6 million) will be paid to SAMA;
  • The investment is to be secured over Al Hadeetha's mining licence and related assets; 
  • The Investment Agreement does not include an option for SAMA to convert the investment to equity in any entity; and 
  • Following a 24-month grace period, Al Hadeetha will pay a fee (in quarterly instalments) equal to 1.5% p.a. of the total investment amount over a six-year term (i.e. an eight-year total term).

Alara Chairman James Phipps said: 

“Execution of this Investment Agreement with Qatar’s SAMA Global is a major milestone for Alara and reflects the inherent value of the Washhi-Mazzaza Copper Project and the strength of the Company’s joint venture relationship in Oman. Execution of Alara’s strategy to develop and expand its project portfolio beyond Washhi-Mazzaza will also be strengthened by the SAMA investment.”

Alara Managing Director, Justin Richard commented: 

“The SAMA Investment Agreement was not the only finance offered to Al Hadeetha. In addition to favourable finance terms, the SAMA deal also provides for investment into Al Hadeetha’s other projects, including Mullaq and Al Ajal, which can be developed around the proposed WashihiMazzaza copper processing plant. We expect the relationship with banks and other financiers to be further strengthened by the SAMA Investment Agreement, with other finance options still under consideration for targeted project development opportunities.”

Click here to view the full announcement 


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ASX Announcement 5 March 2019 

PERTH: Alara Resources Limited (ASX: AUQ) (Alara or the Company) is pleased to announce that Al Hadeetha Resources LLC (Al Hadeetha) has engaged McNally Bharat Engineering Company Limited (MBE) to perform engineering work for the Al Hadeetha Copper Project in the Sultanate of Oman.

The formal appointment of MBE follows a thorough tender evaluation process, letter of intent and meeting held between MBE, Alara’s EPCM contractor Progesys and Al Hadeetha in India last week.

The scope of work for MBE is progressing with front-end project engineering, geotechnical drilling and preparation of detailed designs for plant and other site infrastructure. Finalised plant layout, process flow diagram, single-line diagram and the piping and instrumentation diagram (P&ID) are due for completion in Q2 of calendar 2019, with detailed engineering due in early Q3.

The appointment also provides for an extended work scope including procurement for the proposed Al Hadeetha 1Mtpa1 copper concentrator plant and related infrastructure.

Justin Richard, Managing Director of Alara and Al Hadeetha, said: 

“This is another important step forward for the development of the Al Hadeetha Copper Project at the Washihi-Mazzaza site in the Sultanate of Oman. 

We are pleased to enter this partnership with MBE who have demonstrated a detailed understanding of the technical aspects of the project, possess in-depth knowledge of copper mineral processing and a thorough awareness of all project work requirements in Oman. 

All stakeholders are focused on meeting the development milestones to see Al Hadeetha Resources become the next producer of copper concentrate in Oman.” 

About MBE 

With approximately 1500 engineers, MBE has in-house capabilities for basic and detailed engineering, project management, supply chain management, manufacturing, quality control, construction, erection, commissioning and after-sales service support including operation and maintenance.

In the last five years MBE has supplied several base metal processing plants including a 2.7 Mtpa Zn-Pb beneficiation plant, a 3.35 MTPA copper concentrator plant for Hindustan Zinc Limited (Vedanta Group) in India and a 7.5 MTPA copper concentrator plant in Zambia.

Founded in 1961, as an extension of McNally Pittsburgh (USA) set up to manufacture equipment for the coal and mining industry, today MBE has grown into a multi-product, multi-location, multi-dimensional group. MBE is one of the leading engineering companies in India engaged in providing turnkey solutions in the areas of power, steel, aluminium, materials handling, base metal mineral beneficiation, pyro-processing, pneumatic handling of powdered materials including fly ash handling and high concentrate disposal, coal washing, port cranes, cement, oil and gas and civic and industrial water supply, amongst others.

Through its subsidiary McNally Sayaji Engineering Limited (MSEL) MBE manufactures a wide range of equipment for all core sector industries. MSEL has five plants located at Kumardhubi, Asansol, Bengaluru and Vadodara. In association with another subsidiary, MBE CMT India Private Limited has helped MBE become a respected name in coal and mineral beneficiation technologies. MBE acquired MBE EWB kft (Hungary), among the leading pneumatic conveying and ash handling solution providers in the world, in 2001.

MBE also operates in infrastructure sectors such as buildings and townships, roads, metro, railways amongst others. It has access to world-class technology through strategic tie-ups with leading companies around the globe.

In short, the appointment of MBE is the first step toward developing a mutually rewarding and potentially long-term business relationship as the mining sector in Oman continues to expand2 along with Alara’s project portfolio.

Click here to view the full announcement


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Alara has demonstrated its capability as a mineral resource developer. With a completed Definitive Feasibility Study on its flagship Khnaiguiyah Zinc-Copper Project in Saudi Arabia and an advanced and comprehensive Scoping Study for its Daris/Washihi Copper-Gold Project in Oman, the Company is poised to transition to a mine builder and operator.


Khnaiguiyah Zinc-Copper Project – Saudi Arabia (50%)

  • Alara's 50% interest held via joint venture company, Khnaiguiyah Mining Company (KMC)
  • Heads of Agreement (HoA) signed with United Arabian Mining Company LLC (Manajem) to increase Alara's interest from 50% to 60% ownership of KMC
  • Located adjacent to bitumen road ~200km west of Riyadh (capital city) near major Riyadh to Jeddah highway
  • Comprises 1 Mining Licence (issued in December 2010 with exclusive 30 year term and no mineral royalties), 2 Exploration Licences (granted, pending renewal) and 5 Exploration Licence applications, totalling ~380km2 pending completion of transfer to KMC
  • JORC Reserves (Proved and Probable) reported to JORC 2004 standard of 26.08Mt at 3.3% Zn and 0.24% Cu
  • 2Mtpa Definitive Feasibility Study (DFS) completed in Q2 2013 with projected US$257M capex, 2.8 year pay-back, A$2.074B Life of Mine (LOM) revenues and A$0.873B LOM EBITDA (at base case Zn/Cu prices)
  • Saudi Industrial Development Fund (SIDF) project financing pending submission - potentially up to 75% of construction costs

See more on the Khnaiguiyah Zinc-Copper project

Daris/Washihi Copper-Gold Project - Oman (50-70%)

Alara has completed a Scoping Study centering on the Washihi prospect with inputs from the Daris, Mullaq and Al Ajal prospects. A revised Advanced Scoping Study has been completed.

Washihi Copper-Gold Project

  • Alara's 70% is held via joint venture company, Al Hadeetha Resources LLC
  • Located ~80-160km east of Alara's Daris Copper-Gold Project and comprises 3 Exploration Licences totalling ~105km2 applications for 3 Mining Licences totalling 5.5km2
  • JORC Resource: Indicated 6.84Mt at 0.90% Cu and .017%g/t Au and 7.27Mt Inferred at 0.71% Cu and 0.20g/t Au

Daris Copper-Gold Project

  • Alara's 50% (with right to 70%+) is held via joint venture company, Daris Resources LLC, which holds the exclusive right to manage, operate and commercially exploit the Exploration Licence.
  • Located ~150km west of Muscat (capital city) and comprises a Mineral Excavation Licence of ~587km2 and applications for 2 Mining Licences totalling 4.5km2
  • JORC Mineral Resource Estimate (Measured and Indicated) of 240Kt sulphide ore at 2.37% Cu and 183Kt oxide ore at 0.72% Cu

See more on the Daris/Washihi Copper-Gold project


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