Beadell Resources announced today it was seeking a partner to help unlock the extensive iron ore at its Tucano project in Brazil.
After undertaking a strategic review of the resource at Tucano, Beadell said it would remain a pure gold focused company and would look for a partner to unlock the value of the iron ore at the site.
Beadell said it is looking to negotiate an agreed price for iron ore processed by the partner mined as “waste” in the gold operation, and a lesser price for iron ore mined by the partner itself within Beadell’s mining concession.
The company said under a 2005 agreement with Anglo Ferrous Amapa Mineracao, if Anglo Ferrous wished to mine iron ore at the site it would first reach agreement with Beadell as a joint operation, however no such agreement had been struck.
Beadell managing director Peter Bowler said he would update shareholders on the strategy as it progressed over coming months.
“This strategy will add significant and tangible value for our gold project without the financing or execution risk of ‘going it alone’ in the iron ore,” he said.
Beadell shares were up 5 cents to 73.5 cents at 12.11pm WST time today.
