Australasian Resources has announced engineering and services contracts with Hong Kong-based MCC Overseas, for the Balmoral South iron ore operation in the Pilbara.
The Perth-based iron ore miner said that its wholly-owned subsidiary, International Minerals, had signed MCC as its engineering, procurement and construction management contractor for Balmoral, while MCC will also prepare a Chinese financing technical report for the project.
International Minerals said the report would support it in applying for export credit financing from Chinese banks, to secure 75 per cent of the project’s funding.
Under terms of the contract, International Minerals will pay MCC a management fee based on a percentage of all payments made during construction.
“The ARH board believes that the execution of the EPCM contract and the technical service contract are significant milestones in the development of Balmoral,” chairman Domenic Martino said in a statement.
“The company will work in conjunction with MCC HK in the coming months to secure capital for the project and enable further development of its world class magnetite project.”
At close of trade, Australasian stocks had gained 3.7 per cent, trading at 14 cents.
