Palmer funnels $2m into Australasian

Mining magnate Clive Palmer’s Mineralogy has agreed to provide iron ore hopeful Australasian Resources with a $2 million loan facility, which will allow the company to pursue additional mining rights at its Balmoral project, and to continue negotiations with Chinese banks for project development funding.

The facility will provide Australasian with sufficient capital to consider the acquisition of an additional 1 billion tonne mining right at its Balmoral project, which is adjacent to Citic Pacific’s Sino Iron project in the Pilbara.

The potential acquisition of the mining rights will be presented to company shareholders for consideration in coming months, Australasian said.

The loan facility is on the same terms as a previous $3 million loan facility announced to the ASX in April 2010.

Also today, Australasian announced the appointment of two new company directors.

The explorer appointed former chief executive Zhenya Wang as its new managing director, and former deputy chairman Clive Mensinc as non-executive director.

At close of trade today Australasian shares had gained 5.4 per cent, to trade at 19.5 cents.