Fe Limited (ASX:FEL) (FRA:B4T) has taken another key step in a fast-track strategy towards iron ore production by completing the transaction to acquire 50% of the Yarram Iron Ore Project in the Northern Territory.
This will enable the company to get on the ground in the near-term with aggressive exploration work planned with the intention of beginning production on the project as soon as possible.
The transaction has been completed via FEL purchasing a 50% share in the entity which owns the Yarram Iron Ore Rights.
“Excited about potential”
FEL executive chairman Tony Sage said “We are pleased to have completed the Yarram acquisition.
"Our team visited the site earlier this month and are excited about its potential, so we look forward to conducting further drilling, environmental and stakeholder work in the new year.”
Yarram is one part of the company’s two-pronged iron ore production strategy with the other being JWD in Western Australia.
FEL has this month lodged its Works Approval application for the JWD Iron Ore Project with the WA Department of Water and Environmental Regulation (DWER).
The Works Approval is the only outstanding primary environmental approval required to facilitate the commencement of works on site.
Strong iron ore market
FEL is determined to bring the projects to production as soon as possible with strong current market conditions and positive future fundamentals.
Prices remain high and China’s new 15-year plan was outlined recently which boosts confidence for FEL and the industry as a whole.
The company is also putting in place a talented team with experience in the iron ore industry to bring its production plans to fruition.
Sage said: “Our experienced team is familiar with what is required to bring this style of project into production.
“We are pushing the projects along as fast as we can as iron ore markets remain very strong, so we are striving to take advantage of the demand that exists for high-quality product such as that envisaged to be produced from these projects.”
Yarram work plans
At Yarram, the company completed due diligence to its satisfaction and has completed a site visit.
With the transaction now complete and COVID travel restrictions eased, the company is also intending to carry out environmental and further stakeholder consultation in the new year and is planning work for resource drilling.