Astra Mining receives LOI from FÉMIKSZ to acquire T-Steel products

Astra Mining, an unlisted public Australian diversified mining company, has received a letter of intent from FÉMIKSZ to purchase steel products manufactured using the T-Steel technology.

FÉMIKSZ, a privately owned wire and nail manufacturing company in Europe, plans to acquire from Astra 35,000 tons per annum of T1 and T2 grade steels and 500 tons per annum of the T7 grade steels using the T-Steel technology.

T-Steel is a patented technology that has been proven to substantially reduce the cost of production, and to significantly strengthen produced steel.

FÉMIKSZ was founded in 1994 and has a well established and profitable business and a long history of manufacturing products for the local Hungarian, French, German, Austrian, Italian and Dutch markets. FÉMIKSZ aims to diversify its product line and break into new markets by the introduction of T-Steels.

Astra Steelworks Pty Ltd, a subsidiary of Astra Mining, received the LOI from FÉMIKSZ.  The amounts are dependent upon an acceptable negotiated price.

The agreement provides a boost as Astra moves towards listing Astra Resources PLC on the Frankfurt Stock Exchange in early October.

On August 17, in a major vote of confidence for Astra Mining's technology and strategic plan, New York based Minevest Consultants in conjunction with major international investment banks agreed to "unconditionally underwrite" Astra Resources PLC's IPO to the tune of €1 billion.

The plan is for Astra Mining to be rolled into Astra Resources PLC.

FÉMIKSZ’s said its decision to approach Astra was based on the many advantages of the T1 to T9 first grade steels. The production of T-Steel includes micro alloying technology which improves the physical characteristics such as higher tensile strength, better machinability and higher fatigue limits.

Astra said considerable savings can be realised during the manufacturing process in terms of manufacturing costs versus energy input and reduced CO2 emissions by up to 50%.

One of the most significant factors in the application of the T-Steel technology is that factories already producing certain steels, for example stainless steels, do not necessarily require expensive upgrades and investments in extra equipment should they wish to introduce the technology.

Silvana De Cianni, Astra’s managing director, said “T-Steel technology aims to make it possible to deliver the most economic benefits to standard, construction-oriented “average” or older steel mills, who would be able to manufacture a number of T-Steel products cost effectively, and thus enter different and more profitable markets.”

“Astra has also released details of a high end technology contained in the IP owned by Astra which contains the production specification and manufacturing technology of premium grade, high category, high purity, high durability, long life, ball bearing steel, suitable for applications for aerospace industries and nuclear plant components and turbine manufacturing.”

With a focus on processing roll wires, manufacturing hard, semi-hard and soft wires and various grades of special nails, the manufacturing facility has substantial yearly capacities and projected gross revenue in excess of 4 million euros (A$5.5 million).

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19266/astra-mining-receives-loi-from-fmiksz-to-acquire-t-steel-products-19266.html