Centaurus Metals (ASX: CTM) has cleared the final regulatory hurdle to begin development of its Jambreiro Iron Ore Project in southeast Brazil after securing the key installation licence.
The company received the licence ahead of schedule and can now begin onsite construction at the project.
The installation licence approval allows Centaurus to operate at a production rate of 3 million tonnes per annum of final saleable product, though the company initially intends to begin operations at a rate of 2 million tonnes per annum.
A previously completed Bankable Feasibility Study on the Jambreiro Project outlined a robust, low-cost 2 million tonne per annum project capable of generating revenues of A$847 million and EBITDA of A$556 million over its initial nine year life.
The BFS showed a Net Present Value of A$140 million and an Internal Rate of Return of 33%.
The licence includes all the water permits and vegetation clearing authorisations required to facilitate the development of the project.
Initial development work is already underway and actual site works are planned to begin at the end of April, subject to completion of a suitable offtake arrangement and finalisation of the overall funding mix.
The company is continuing negotiations with a number of potential customers in relation to offtake to facilitate a suitable debt financing package for project development.
Centaurus had a cash balance of $23.4 million at the end of December 2012 against a market cap. of $48.9 million at a share price of $0.25.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.