Emergent Resources has scrapped its planned $200 million joint venture with Beijing China Metallurgical Investment for the Beyondie iron project in the mid-west.
Emergent Resources has scrapped its planned $200 million joint venture with Beijing China Metallurgical Investment for the Beyondie iron project in the mid-west.
Under the terms of the joint venture announced last October, Emergent was to receive more than $5 million from a placement of shares and options to CMIC.
In a statement to the Australian Securities Exchange today, Emergent said that it had not received the funds and therefore the company has decided not to proceed with the proposed joint venture.
"The Company will continue with its plans to develop the Beyondie project into a large scale, long term, iron ore mining operation, and will pursue partnership arrangements with other interested parties," the ASX statement said.
"Given the world class potential of Beyondie, we are confident in the Company's ability to attract other key strategic partners to help deliver the maximum economic value," said Emergent managing director Garry Hemming.
"We will now move ahead with our next phase of exploration at the project to expand the magnetite Resource base and confirm a maiden DSO hematite resource."
The Beyondie Project is located adjacent to the Great Northern Highway and Goldfields Gas Pipeline in the mid-west.
See company statement below:
Emergent Resources Limited (ASX: EMG) (Emergent, the Company) advises that it will not proceed with its proposed Joint Venture Agreement with Beijing China Metallurgical Investment Co Limited (CMIC) for the development of Emergent's Beyondie Iron Project.
Under the terms of Emergent's proposed $200 million joint venture with CMIC for the
development of the Beyondie project, announced on October 28 last year, Emergent was to receive $5,004,073.10 from a placement of shares and options to CMIC.
Emergent recently advised the market (in an ASX announcement on 30 August) that the receipt of the placement funds from CMIC was expected by 15 September. The Company now advises that these funds have not been received, and that it has not received confirmation from CMIC regarding the transfer of the funds.
Given that the proposed date for the payment of these placement funds has not been met,
Emergent has decided it will not proceed with the proposed joint venture with CMIC for the Beyondie Iron Project.
Proceeding with drilling of hematite discovery
In June 2010 Emergent discovered a potential new, large, near surface Hematite Direct
Shipping Ore (DSO) deposit in tenement E52/2215 at the Beyondie Iron Project, adjacent to tenement E52/1806 - which hosts a JORC Inferred Magnetite Resource of 561 million tonnes grading 27.5% Fe. The Hematite discovery may result in earlier cash flows then the current planned magnetitie concentrate production scheduled for 2014.
The Company will continue with its plans to develop the Beyondie project into a large scale, long term, iron ore mining operation, and will pursue partnership arrangements with other interested parties.
Emergent has commenced the RC drill program for the Direct Shipping Ore (DSO) hematite iron deposit at Beyondie. Subject to successful results the Company plans to expand the drill program with a second phase campaign at the hematite deposit, entailing an additional 10,000 metres (at a nominal 400 metre spacing) along an extended total strike length of over 12 kilometres, which will significantly progress steps to defining a DSO mineral resource. (Refer ASX release 2 June 2010).
Emergent managing director Garry Hemming said: "Given the world class potential of Beyondie, we are confident in the Company's ability to attract other key strategic partners to help deliver the maximum economic value. We will now move ahead with our next phase of exploration at the project to expand the magnetite Resource base and confirm a maiden DSO hematite resource."
