Fortescue is looking to get another iron in the fire of a red hot gold market and brightening outlook for copper via a big chunk in West Perth junior Magmatic Resources.
Magmatic told the Australian Securities Exchange on Friday Fortescue had stumped up $3.2 million to grab a 19.9 per cent share in the company.
Fortescue has also agreed to spend a maximum of $14m over six years to earn up to a 75 per cent joint venture interest in the Myall copper-gold project in central west NSW.
Shares in Magmatic skyrocketed 42 per cent on the news to trade a 6.4¢ each by 9.30am.
Magmatic executive chairman David Richardson said the company was “excited” to partner with Fortescue.
“Myall has many of the signatures of a tier 1 copper-gold deposit and Magmatic has recognised the need to partner with a major to further advance the project following the maiden resource,” he said.
The Myall resource estimate encompasses 293,000 tonnes of copper, 237,000 ounces of gold and 2.8 million ounces of silver.
In September, Andrew Forrest’s Fortescue took a holding in Queensland-focus copper explorer Strategic Energy Resources.
Mr Forrest has also ventured into gold before, notably with an investment in Regis Resources via his Wyloo arm.