australasian resources gets china support

Hi ARH Holders,

Just letting you know that I have purchased a small parcel yesterday. I know we still have a long way to go with Australasian Resources, but it's a good start!

Good Luck Holders
J

Australasian Resources Ltd. (ARH.AU) has tentatively secured backing from Industrial & Commercial Bank of China Ltd. (1398.HK) for its $3.9 billion iron ore project in Australia's remote Pilbara region, the iron ore development company of Australian billionaire Clive Palmer said Tuesday.

The Perth-based company in a statement said it had received a nonbinding letter of interest from ICBC that expressed its "willingness and interest to finance the project."

News of the support from China's largest lender by assets helped buoy the company's share price, which ended the day 8.3% higher at A$0.13 while the broader market declined.

Australasian, which is almost 68% owned by Mr. Palmer and his associates, is developing the Balmoral South project in Western Australia state, which is expected to produce 12 million metric tons of the steelmaking commodity a year. The company holds the right to mine 1 billion tons of magnetite iron ore in the Balmoral region and has completed a feasibility study for the project.

The company has hired China's MCC Overseas Ltd. to oversee construction and manage contractors for the project and earlier this month appointed Jefferies & Co. to assist with raising $1.4 billion through the issue of a high-yield bond.

"The letter of interest from ICBC along with the engagement of Jefferies...provides further confidence that the financing structure the board are pursuing will provide the capital required to construct and commission" the Balmoral South project, Australasian said.

It said it also plans to approach additional Chinese banks with an application for an export buyer's credit.



Read more: http://www.foxbusiness.com/news/2012/06/19/australasian-resources-gets-china-support-for-3-billion-iron-ore-project/#ixzz1yHSJ32q6