New iron ore mine on track: Centrex

11 December 2007 | 03:48 Code : 16212 Geoscience events
Emerging Australian iron ore producer, Centrex Metals has announced a A$17.32m....

  Emerging Australian iron ore producer, Centrex Metals has announced a A$17.32m rights issue of shares to progress development of its Wilgerup project in South Australia.Centrex said funds will be used to complete final feasibility studies at Wilgerup, which is on track to mine and deliver its maiden hematite ores from the second half of next year.The rights issue follows Centrex’s success in September this year in attracting a A$40m commitment from Top 10 China steel mill, Baotou Iron and Steel (Group) Co, Ltd, to take a second nearby Centrex iron ore project, Bungalow, through to completion of a bankable feasibility study, in return for a 50 percent interest.Centrex’s Managing Director, Gerard Anderson said there is now considerable development and financial momentum building behind Wilgerup and the company is on track to meet its timetable objectives for the project’s first ore deliveries.“The rights issue proceeds will have a threefold benefit,” Mr Anderson said. “They will allow finalisation of detailed engineering studies to support mine development planning at Wilgerup, contribute to the cost of ordering long lead mining items, and complete the purchase of the property to streamline the commencement of mining.”“Significantly, this continued progress at Wilgerup is sending a strong signal to global iron ore traders that South Australia’s Eyre Peninsula is, from next year, a serious alternative play,” he said.

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