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.
Emergent Resources developing Beyondie into world class magnetite project
Emerging Western Australian iron ore developer, Emergent Resources, (ASX: EMG) at its flagship Beyondie Magnetite Iron Project upped the mineral resource at Beyondie by a factor of four to 561 Million tonnes @ 27.5% Iron (Fe) during the December quarter.
An additional conceptual exploration target at Beyondie of 480-510Mt grading 27.0-28.5% Fe was also confirmed in E52/1806 by independent geologists.
A further conceptual exploration target was also confirmed outside of tenement E52/1806 of 3.7-4.2 billion tonnes.
For $23 million market-capped Emergent, despite the increases in resource and exploration targets, this represents only a 12 km segment (in E52/1806) of the project’s total 60 km length.
The December quarter represented a purple patch for the company, yielding the Chinese State Owned Enterprise China Metallurgical Investment Co Ltd (CMIC) successfully completing Due Diligence and entering into a binding agreement to proceed with a A$200m 50:50 Development Joint Venture for the Beyondie Iron Project.
With a placement of shares and options to CMIC, this will provide CMIC with an approximate 15% interest in the Company.
The Agreement has been given shareholder approval and is now subject to Foreign Investment Review Board, and the Peoples Republic of China National Development and Reform Commission approval.
Beyondie is developing into a world class magnetite iron project with the potential produce a high grade magnetite concentrate product.
The Beyondie Development JV will target the commencement of mining operations with an initial targeted production of 3Mtpa of magnetite concentrate escalating to second stage 8Mtpa as soon as feasible.
CMIC has advised that the JV will also seek additional funding over the initial A$200m to achieve the second stage.
In October Emergent announced the acquisition of 100% ownership of the Beyondie Project through the purchase of De Grey Mining Limited’s 20% free carried interest.
The company recently announced that it had received subscriptions from sophisticated and professional investors to raise A$3.0 million.
The placement has been made to clients of Casimir Capital LP and its Australian operations Casimir Capital AP.
The placement of 5,000,000 shares will be made at a price of A$0.60 per share. The placement also includes the issue of one free attaching listed option (EMGO) for every two shares placed, exercisable by the payment of 20 cents each on or before 30 September 2010.
