Shares in Aurox Resources have surged after it received environmental approval for its Balla Balla magnetite iron ore project in the Pilbara in a move the company says will provide certainty for potential financiers.
Shares in Aurox Resources have surged after it received environmental approval for its Balla Balla magnetite iron ore project in the Pilbara in a move the company says will provide certainty for potential financiers.
The approval is for a 6 million tonne per annum magnetite mine which will be ramped up to a 10mtpa operations within five years of commissioning.
Balla Balla is expected to start production in early 2012.
Shares in Aurox jumped five cents or 24 per cent to 26 cents at 14:06 AEST.
"This is a pivotal milestone for the Company and its shareholders; one that ensures the Balla Balla project will be developed as soon as the next stage of financing is secured," Aurox managing director Charles Schaus said.
"Importantly, the environmental green light is the crucial Approval financiers now look for when considering the commitment of funds to projects like Balla Balla, as they can be assured their investment can be put to work immediately."
Representatives from Aurox are currently in Beijing to start talks with potential investment groups and existing off-take partners.
Last month the company amended its convertible notes terms to allow the early conversion to shares.
The restructure allows the company to remove a $47.8 million debt overhang at a one-off cost of $12.6 million.
The announcement is below:
Pilbara iron ore developer Aurox Resources Limited (ASX: AXO) is pleased to announce it has secured Environmental Ministerial Approval from the Western Australian ("WA") Government for its 100% owned Balla Balla iron ore Project.
The Balla Balla Project is based on a 6 million tonne per annum ("mtpa") magnetite mine growing to a 10 mtpa operation within five years from commissioning. The Balla Balla Project is expected to achieve first production in early 2012.
Aurox received the Approval notification from the WA Minister for Environment on 24 April, marking another major milestone in the development of the Balla Balla Project.
Aurox Managing Director Charles Schaus stated, "This is a pivotal milestone for the Company and its shareholders; one that ensures the Balla Balla Project will be developed as soon as the next stage of financing is secured."
"Throughout the approval process there has been close co-operation between the Company, the State Government and key project stakeholders, and we commend everyone involved for their efforts and patience. The Minister for Environment and the Office of the Appeals Convenor were particularly helpful in completing our approval."
"Importantly, the environmental green light is the crucial Approval financiers now look for when considering the commitment of funds to projects like Balla Balla, as they can be assured their investment can be put to work immediately."
Representatives from Aurox arrived in Beijing on 27 April to commence discussions with potential investment groups and existing off-take partners.
Securing Ministerial Approval for the Project ensures production at Balla Balla, based on a large titanomagnetite orebody located near the coast 110 kms southwest of Port Hedland, moves another step closer. Engineering of plant and port infrastructure is well advanced including a 15 year port access agreement with the Port Hedland Port Authority for the Utah Point multi-user facility.
