Proactiveinvestors recommends
Additional Information
Market: ASX
Sector: General Mining
EPIC: CAP
Latest Price: A$0.29  (0,00%)
52-week High: A$0.51
52-week Low: A$0.18
Market Cap: A$29.26M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
Carpentaria Exploration
www.carpentariaex.com.au

Carpentaria Exploration (ASX: CAP) is an exploration company focused on discovering base, precious metals and bulk commodities in eastern Australia. The company currently has interests in iron ore, tin, gold, copper and coal exploration projects. Discoveries to date include: Hawsons Iron Project - NSW and the Euriowie Tin Project - NSW.

Full Carpentaria Exploration profile here
Is CAP a Buy, Sell or Hold?Get your FREE analysis of CAP
Pdf

Carpentaria Exploration shares spike on A$81M Hawsons Iron Deal

20th Apr 2010, 9:05 am

Carpentaria Exploration (ASX: CAP) has announced an agreement with privately owned Bonython Metals Group Pty Ltd (BMG) to farm-in on Carpentaria’s 100% owned Burta EL7208 and Little Peak ELA3848 tenements at its Hawsons Iron Project in New South Wales.

The A$81 million deal represents a staged injection of cash to Carpentaria of $53M plus $28M for exploration costs and has the potential to transform Carpentaria from a minerals explorer to mining house.

Australian and Asian investor-backed BMG is to make an initial $5M cash payment and a further $8M to fund exploration and resource definition staged over 3 months with future staged cash and other payments of up to $68M to Carpentaria.

Carpentaria will retain a 20% free carried interest to the targeted production of 20 million tonnes per annum (tpa) iron ore concentrate.

The total Carpentaria exploration budget on this and other Carpentaria projects has been boosted to around $10 million for 2010 and will be spent largely on drilling.

The transaction has the potential to transform Carpentaria into an iron ore mining company in the medium term, that has additional exposure to tin, gold, nickel and coal projects across eastern Australia.

Carpentaria’s Executive Chairman, Nick Sheard said, "the new agreement with BMG will boost plans for the development of a new magnetite iron province near Broken Hill, with considerable potential economic benefits for the region."

“Carpentaria welcomes BMG’s participation in our project, following their earlier agreement to farm-in on our South Dam Iron Project in South Australia (announced 4th February 2010)."

"This latest agreement will enable Carpentaria to retain a major equity interest in the Hawsons Iron Project with the objective of fast-tracking production of up to 20 million tonnes per annum of concentrate,” Sheard added.

“Such a large project requires considerable funding and requires a partner with sufficient financial backing to fast track its potential."

"By retaining a 20 per cent free carried interest means that Carpentaria shareholders will benefit from having a 20 per cent stake in any potential future production and subsequent cash flows from iron ore production in the medium term at no further outlay. This is a very good outcome for Carpentaria,” said Sheard.

Located approximately 60 kilometres south of Broken Hill, the tenements subject to this agreement are only 40 kilometers from a main rail line and have ready access to skilled labour and other infrastructure.

Carpentaria Exploration shares rose 50% to 30 cents in trading this morning.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.