Former gold miner Gindalbie Gold’s plans to mine iron ore near Geraldton have received a boost with a Malaysian steel company taking a significant stake in the company.
Gindalbie Gold announced this week that it had placed $3.37 million worth of its stock with Steel Ventures Ltd, a subsidiary of Malaysian conglomerate Melewar Industrial Group Berhad.
As a result, Melewar became the single largest holder in Gindalbie (12.8 per cent) and paves the way for the two companies to develop iron ore mining opportunities. Specifically, in a statement, Gindalbie said the cash would be partially used to evaluate iron ore prospects at its Mt Karara and Blue Hills projects, situated on the Minjar tenement package.
A pre feasibility study is currently under way into the development of Gindalbie’s Mt Karara magnetite deposit, as well as continued exploration for hematite ores at Minjar. Some of the placement will also fund Gindalbie’s ongoing gold exploration program at Minjar.
Gindalbie’s iron ore tenements are located a short distance from iron ore producer Mt Gibson’s Kooloonooka iron ore project, as well as Midwest Corporation iron ore tenements – both of which are investigating downstream processing of iron ore.
