china metallurgical approves mou with aust resourc

The state-owned China Metallurgical Group Corporation (MCC) has given
approval to proceed with the memorandum of understanding signed in
Beijing with Australasian Resources Ltd (ASX code: ARH).
Key terms of the MOU are:
* MCC will provide a commercial proposal for the construction
of ARH's iron ore project.
* At the request of ARH, MCC will organise up to 70% of the
contract price by way of debt funding. Based on a capital cost of $US2.1
billion this would potentially represent funding of up to $1.5 billion.
* MCC has agreed to provide sale and offtake of iron ore
concentrate in proportion to its funding.
* MCC will provide equity investment in the share capital of
ARH in an amount to be agreed between the parties.
* ARH will send its technical team to China to meet MCC's
designated special team for the project to finalise MCC's commercial
proposal for the construction of the ARH project.
* The memorandum is non-binding.