The Chinese clearly want to do deals which is very positive for...

The Chinese clearly want to do deals which is very positive for ARH.

Emergent Resources partners with China MetallurgicalFont

EMERGENT Resources has agreed to form a joint venture with China Metallurgical Investment to develop its Beyondie Iron project in Western Australia.

Emergent said that the agreed joint venture with China Metallurgical Investment would provide $200 million to fund the project, subject to completion of due diligence and completion contracts.

The mine, in the state's midwest iron ore region, will initially target production of three million tonnes a year of magnetite concentrate, Emergent said.

The Perth-based company has also agreed to place about 8.6 million shares to China Metallurgical Investment at 45c each, together with a 1-for-2 option entitlement of about 4.3 million shares at 27c each, exercisable at 20c on or before September 30, 2010.

The placement will raise about $4.9 million and provide working capital for the Beyondie Iron project, it said.

Additionally, the company also launched a placement of 6.3 million shares to Australian investors at 40c each to raise $2.52 million.