Companies form Pilbara iron ore project agreement Tuesday, 20 December 2005. 14:41 (AEDT)Tuesday, 20 December 2005. 13:41 (ACST)Tuesday, 20 December 2005. 13:41 (AEST)Tuesday, 20 December 2005. 14:41 (ACDT)Tuesday, 20 December 2005. 11:41 (AWST) Sherlock Bay Nickel Corporation has entered into an agreement with Mineralogy to develop a large scale iron ore project in the Pilbara, in north-west Western Australia.
Sherlock has purchased the Cane River project from Mineralogy, which lies 80 kilometres south-west of Dampier.
Sherlock will mine several extensions of Mineralogy's tenements, expected to produce 15.5 million tonnes of ore a year.
The companies have received environmental approval to build a 150 kilometre rail line and port at Cape Preston.
Sherlock managing director Darren Hedley says with an expected profit in excess in $200 million, a takeover is not being considered at this stage.
"I guess there's always that potential, I guess it depends on the shareholding and the shareholder base at the time," he said.
"I guess you can never say never, but it's not our intention. Our intention is to build a significant mining company and that's, I guess, one of our key plays along with our nickel project in the same region."
SHN Price at posting:
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