Appian Capital Advisory has acquired a package of properties from Iluka Resources (ASX:ILU) strategically located near production-ready mineral sands deposits and processing facilities in Virginia, US.
Appian is a global investment advisor to long-term value-focused private capital funds invests solely in mining and mining-related companies and executed the deal through its majority-owned subsidiary Atlantic Strategic Minerals (ASM).
The transaction follows extensive engagement with the ASM team and is a strong fit with the global firm’s investment strategy.
The properties include some of the highest-grade mineral sands resources globally. They are expected to produce high-quality ilmenite and zircon from a historically operating mine with significant existing infrastructure.
The transaction, which advances Appian’s mineral sands strategy and complements its investment in Gippsland Critical Minerals, includes a provision for the sale of mineral sands products back to Iluka.
It also offers material resource development upside and the ability to augment returns through mine life extensions. It also provides potential to leverage existing facilities to process rare earth elements and drive growth and expands Appian’s presence in the US.
Appian plans to leverage its development and operational expertise to de-risk and restart the mining operations, with the refurbishment of 2 existing mineral concentrator plants and the development of mining infrastructure.
Appian founder and CEO Michael W. Scherb says the acquisition provides a significant opportunity, with some of the highest-grade mineral sands resources globally, strategically located close to end users in the US with significant infrastructure already in place.
“Appian is well positioned, with its extensive mine development and operational expertise, to return these assets to production and maximize their potential. The transaction is also an excellent fit with our existing portfolio and focus, as we continue to invest in the global megatrends shaping society.”
“The transaction is also an excellent fit with our existing portfolio and focus, as we continue to invest in the global megatrends shaping society“
Atlantic Strategic Minerals CEO Chris Wyatt adds that entering into a partnership with Appian instils confidence in the future of ASM as a domestic mineral sands producer.
“Their involvement ensures that these Properties will be restarted in an efficient and timely manner. Moreover, with Appian’s support, we can better realise the potential value of ASM’s strategic location. We see this collaboration as a pivotal move for our growth and future success.”
Appian is a global investment advisor in the metals and mining industry, with global experience across South America, North America, Australia and Africa and a track record of supporting companies to achieve their development targets, with a global operating portfolio overseeing nearly 7,000 employees. Appian has a global team of 81 experienced professionals with presences in London, New York, Toronto, Vancouver, Lima, Belo Horizonte, Montreal, Dubai, Johannesburg, and Perth.
Write to Adam Orlando at Mining.com.au
Images: Iluka Resources