Steadright Critical Minerals (CSE: SCM) said this morning that preparatory infrastructure work has begun on the pilot plant at its TitanBeach titanium project in Morocco, moving a heavy mineral sands concept the company has been assembling for two years into the construction phase.
Shan Tang Mining, the Moroccan special purpose vehicle that holds the asset, broke ground at Beach One, the block that received its mining license on Aug. 12. Initial construction work is said to be focused on site preparation, designated areas for employee accommodation containers, a base camp to house pilot plant workers, and assorted minor works needed before plant construction proper can start.
The important detail is who is paying. Under a framework cooperation agreement signed earlier this week, a state-owned engineering and construction group is covering planning, design, permanent works, operations and maintenance, and the accommodation build-out. Neither Steadright nor its Moroccan subsidiary NSM Capital Sarl is required to contribute further toward exploration or production costs, and neither faces dilution as the project advances.
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“We at Steadright are very impressed with the speed at which NSM, Shan Tang, and the SOE are moving things forward,” Chief Executive Officer Matt Lewis said in a statement.
The ownership chain is layered. Steadright holds 76.5% of NSM Capital, which in turn holds a 32% fully carried interest in Shan Tang Mining alongside Moroccan partner Homme Construction. That works out to an effective attributable position of roughly 24.5% for Steadright, with a shareholders agreement allowing it to acquire an additional 3.5% of NSM and lift that stake to 80%.
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TitanBeach covers 192 square kilometres of exploration licences along Morocco’s Atlantic coast, including the 16-square-kilometre permitted concession at Beach One, described by the company as the first coastal heavy mineral sands recovery licence granted on the Atlantic. Titanium dioxide, the target product, is classified as a critical mineral in the U.S., Canada and Europe.
The state-owned partner will operate the pilot plant and use its results to shape a longer term mining strategy.
Steadright Critical Minerals last traded at $0.135 on the CSE.
