MLG Oz's (ASX:MLG) wholly-owned unit IMS Oz Ventures executed a binding heads of agreement with Mick Murray Welding NT to establish an incorporated 50-50 joint venture to commercialize a hybrid and battery-electric road train power-trailer system, according to a Tuesday Australian bourse filing.
The system is being developed in phases, with in-house testing scheduled to begin in the September quarter, per the filing. Site deployment will occur at an MLG-operated haulage site in the Northern Territory.
MLG said its capital commitment to the first phase was around AU$1.2 million to progress the initial system unit into testing. Further capital will be considered by the joint venture board on satisfaction of the applicable phase gate criteria.
The joint venture provides MLG a 50% share of the profit from third-party commercialization across the Australian resources sector.