Emergent Resources (ASX: EMG) is a diversified, multi commodity junior exploration and development company. The company sees the present and foreseeable demand for resource commodities such as iron, base metals and precious metals remaining strong.
Emergent’s strategy is to effectively define and develop the company's Beyondie Iron Project exploration in conjuction with existing strong geological and structural association of lead-zinc and copper-gold mineralised targets.
Investors cheer Emergent Resources' placement and Chinese JV for Beyondie Iron Ore Project
Investors in Emergent Resources (ASX: EMG) are emerging with more cheer after EMG raised capital and inked a deal to develop the company's flagship Beyondie iron ore project.
Emergent raised $2.52 million via a placement of 6.3 million shares at 40 cents per share to sophisticated investors. There is an attaching option for every two shares placed.
A non binding Memorandum of Understanding (MOU) was struck between Emergent and (state owned) China Metallurgical Investment Co Ltd (CMIC) for the development of Beyondie Iron Project in WA’s mid-west iron ore region.
The deal provides for AUD$200m funding from CMIC to achieve commencement of mining operations at Beyondie Project on a 50:50 Development JV basis. A placement of shares and an options to CMIC will raise an estimated AUD$4.9 million.
The deal aims to achieve the commencement of mining operations at the Beyondie Magnetite Project with an initial targeted production of 3Mtpa of magnetite concentrate.
The Beyondie Project is located in the northern region of the Mid West Iron Province in WA, immediately adjacent to the Great Northern Highway and Goldfields Gas Pipeline. The Company plans to develop the project into a long life, large scale, high grade magnetite mining operation, with potential shared rail and port infrastructure.
There is a three month due diligence period to begin within the next month.
