03/12/2013 - 11:49

IronClad receives tick of approval

03/12/2013 - 11:49

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The IronClad Mining and Trafford Resources' Wilcherry Hill iron ore joint venture project is progressing, with a modified development plan sent to the South Australian government receiving a tick of approval.

The IronClad Mining and Trafford Resources Wilcherry Hill iron ore joint venture project is progressing, with a modified development plan sent to the South Australian government receiving a tick of approval.

The proposal seeks to introduce a buffer facility for ore, enabling the joint venture partners to reduce export costs.

The required number of ore containers will drop from 3,000 to 250, removing a financial impost to the project. 

Iron ore will consequently be stockpiled at a buffer facility next to the Lucky Bay port facility near Cowell, speeding up the loading and unloading cycle period before being loaded by crane onto barges for export.

The project is expected to get under way once negotiations to the debt finance of a $22 million capital requirement are finalised.

A budget of $15 million plus contingencies is required for stage 1 of the project, with the purchase and construction of a crushing plant likely to add a further $6 million.

“While the review of operations and amendments to our initial development application has delayed the project, it was the right decision for IronClad,” managing director Robert Mencel said.

Hesaid talks had "been under way for some time", with a number of parties to assist IronClad raise the capital it requires for the stage one completion.

“With the last link of the infrastructure chain now completed – we can accelerate and finalise our current financial negotiations to ensure the project commences as soon as practical," Mr Mencel said.

And that the approval was the “government green light” for mining operations to commence.

Perth-based IronClad has an 80 per cent stake in Wilcherry Hill with Trafford making up the rest.

In addition to Trafford’s 20 per cent ownership, it is also a major shareholder in IronClad, with approximately 27.5 per cent of the issued capital and two if its members on the IronClad board.

Upon the completion of negotiations, the joint venture will commence Stage 1 of Wilcherry Hill, which remains close to budget at approximately $15 million.

Shares in IronClad are trading 11 per cent higher at 20 cents, whilst Trafford shares are 10 per cent lower trading at 11 cents, as of 11am, WST.

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