Crosslands Resources has secured non-binding Letters of Intent (LOIs) from North Asian steel mills to purchase more than 50 million tonnes per annum of iron ore from the Jack Hills expansion project.
Crosslands is a half-owned joint venture of mid-west iron ore company Murchison Metals.
In a statement, Murchison said the LOIs relate solely to the planned magnetite and hematite concentrate products.
Crosslands has yet to begin contract discussions for direct shipping material currently planned as part of its product strategy.
Murchison executive chairman Paul Kopejtka said that the LOIs were significant in that they demonstrated a clear indication of demand from the market for high quality products planned to be produced from Jack Hills, and were a testament to the strong support shown for the project to date.
"The expanded Jack Hills projects will be globally significant with a highly sought after product mix," he said.
"It is evident that the very low alumina and phosphorus content of the Jack Hills concentrate product is a key feature that will differentiate Crosslands' product from others in the marketplace. We are pleased to have the market potential of the project confirmed with such strong demand from potential customers," said Mr Kopejtka.
Crosslands has been successful in securing LOIs from steel mills located across China, Korea. And Japan.
Murchison and Mitsubishi Development each own 50 per cent of Crosslands, which owns and operates the Jack Hills project.
Murchison shares were up 15 cents to $1.96 at 9.15am.
