www.centrexmetals.com.au
Centrex Metals (ASX: CXM) is focused on iron ore exploration on the Eyre Peninsula in South Australia. The company owns the Greenpatch, Bungalow and Cockabidnie tenements. The Bungalow/Minbrie magnetite deposit is located 9km north of Cowell on the east coast of the Eyre Peninsula.
Centrex Metals and Baotou Iron & Steel receive go ahead on proposed joint venture
Centrex Metals (ASX: CXM) has announced the Australian Foreign Investment Review Board has approved the investment by Chinese steel producer Baotou Iron & Steel to acquire up to 50 per cent of the proposed iron ore joint venture with the Australian company on the Bungalow magnetite deposit.
Under the iron ore joint venture, Baotou will pay a total of up to A$40,000,000 into a joint venture account to earn a 50% interest in the iron ore rights to Centrex’s mineral tenement EL3610 located 9 kms north of Cowell on Eyre Peninsula, South Australia.
Centrex Chairman Mr David Lindh said the FIRB approval marked yet another significant milestone for Centrex.
"The Company has announced a series of investments and government consents in the recent past that will help the Company to become a major player, over time, in Australia’s iron ore industry," Mr Lindh said.
"We have been in discussions for many months and it is very pleasing that Centrex and Baotou can now accelerate exploration at Bungalow.”
Centrex has been appointed as manager for Stage 1 and Stage 2, with a joint venture company established to manage the Bankable Feasibility Study and operations.
Centrex will be reimbursed approximately A$2.26 million out of the Stage 1 payments for exploration expenses incurred since signing the Heads of Agreement on 20th September 2007.
Baotou Iron & Steel, part of the Baogang Group based in inner Mongolia, is the tenth largest steel producer in China producing over 8 million tonnes of steel products per year.
