Perth-based minerals explorer Crusader Holdings NL has formed a partnership with Canadian company G4G Resources Ltd to acquire iron ore projects in Brazil as feedstock for the production of saleable iron ore units.
Perth-based minerals explorer Crusader Holdings NL has formed a partnership with Canadian company G4G Resources Ltd to acquire iron ore projects in Brazil as feedstock for the production of saleable iron ore units.
Under the agreement, Crusader will work on behalf of the partnership to identify iron ore fines resources suitable for production, with both companies to be equal partners in any resource that is acquired.
Crusader will then be free carried through to the completion of a scoping study on any resource found under the partnership.
The agreement does not include projects, such as the Posse iron project, already under Crusader's belt.
Below is the full announcement:
G4G Resources Ltd. (TSX-V: GXG) ("G4G") and Crusader do Brasil Mineracao Ltda., a wholly owned subsidiary of Crusader Holdings NL (ASX: CAS) ("Crusader"), today announced the formation of a strategic partnership under which the companies will work together to acquire iron ore fines in Brazil as feedstock for the production of saleable iron units.
The agreement with Crusader compliments the agreement between G4G and Iron Mineral Beneficiation Services (Pty) Ltd. ("IMBS"), under which G4G and IMBS have agreed to form joint venture companies to produce saleable iron units utilising the FinesmeltTM process, a technology which is patented by IMBS. (Refer to G4G news release of July 7, 2008). A presentation outlining this technology is available at http://www.g4gresources.com/uploads/2008-07-10_--_IMBSG4G_presentation.pdf.
Crusader's Managing Director, Mr. Rob Smakman, is resident in Brasil and heads up an experienced and dedicated project acquisitions team, which will keep Crusader at the forefront of new exploration ideas and acquisitions. With offices in Belo Horizonte and Joao Pessoa and several minerals projects including the Posse Iron Project located in the Iron Quadrilateral in the state of Minas Gerais, Crusader is well-established in Brazil. Crusader aims to capitalize on its growing presence in Brazil by applying innovative thinking and cutting-edge technologies to develop projects in the highly under explored Brazilian geological landscape.
"The strategic partnership with Crusader do Brasil is a very important step towards securing iron ore fines in Brazil, a country which is one of the largest iron ore miners and iron and steel producers in the world," stated Peter Arendt, Chief Operating Officer of G4G Resources Ltd.
"The main focus of G4G and Crusader is to source iron ore fines as feedstock for iron production plants which will be
built and operated under joint ventures with our technology partners."
Under the terms of the agreement, Crusader's personnel in Brazil will work on behalf of the partnership to identify iron ore fines resources suitable for the production of iron units, and Crusader and G4G will be equal partners with respect to any resource which is acquired. Crusader will be free carried through to the completion of a scoping study on any resource after which all expenditure will be borne by each party according to their interest in the project.
Crusader's Posse Iron Project falls outside the scope of this agreement and Crusader will continue the development of Posse independently according to the schedule previously outlined.
"The separate agreements that G4G has with Crusader and IMBS complement each other very well," continued Mr. Arendt.
"G4G is currently engaged in a number of negotiations to acquire iron ore fines from which to produce iron units, and our plan is the finalise acquisitions as soon as possible."
