In The West Australian...regarding the FRS deal September 8, 2009, 9:05 am FerrAus strikes $12m deal with Chinese
Pilbara junior FerrAus has struck a $12.6 million deal with China Railway Materials Commercial Corporation designed to advance its iron ore project.
Under the terms of a deal announced this morning the state-owned Chinese group will emerge with a 12 per cent stake in the junior and help FerrAus find funding for the rail infrastructure it needs to take its product to market.
Shares in FerrAus were 10.5¢ higher to 64¢ at 9am.
China Railways will take at least a portion of FerrAus' offtake, on terms yet to be decided.
The two groups have also agreed to look at other potential iron ore projects in the east Pilbara beyond FerrAus' existing resources.
China Railway is the second Chinese group to invest in FerrAus.
China Western Mining has held a 9.9 per cent stake since mid 2008.
UMC Price at posting:
$1.02 Sentiment: Hold Disclosure: Held
