Image in Chinese mineral sands deal
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Mineral sands hopeful Image Resources has signed a deal with a Chinese organisation to investigate results from its North Perth Basin project and may lead to a joint venture.
The company has signed a memorandum of understanding with the China Hainan Provincial Bureau of Geological Exploration (HPBGE), a state-owned entity that employs 1800 people.
Under the deal, Image has agreed to release samples, resources modes and scoping study results from its North Perth Basin project to HPBGE for further assessment of the mineral sands resources.
Image said the deal may lead to the establishment of discussions with HPBGE about the possible commercialisation of the project.
However the deal limits HPBGE's freedom to acquire Image shares of up to 5 per cent.
"Image considers that the MOU represents a significant step towards the commercialisation of its North Perth Basin resources while keeping open the option of developing the resources on a stand alone basis," the company said.
Shares in Image climbed one cent to 42c at 12:07 AEDT.