the age article

Cazaly shares jump amid rumours

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April 13, 2006 - 12:19PM
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Shares in iron ore hopeful Cazaly Resources jumped in morning trade amid speculation that a decision on its dispute with Rio Tinto will be handed down on Thursday.

Cazaly shares had picked up 14.5 cents, or 7.8 per cent, to $2.01 by 1144 AEST.

It is rumoured Western Australian resources minister John Bowler will make a decision on ownership of the contested Shovelanna deposit in WA's Pilbara.

Mr Bowler is understood to want to make the announcement after the market is closed to stop investors making hasty investments.

An announcement after trade on Thursday would mean Cazaly and Rio Tinto shares would not be able to trade again until Tuesday, after the Easter long weekend.

Cazaly pegged the tenement last September, four days after Rio Tinto failed to renew its exploration licence for Shovelanna.

If Cazaly is successful, it will immediately kick off a $6 million exploration program, sponsored by joint venture partner Echelon Resources.

BHP Billiton has agreed to purchase the ore from the project, with first production expected within two to three years.


Doesn't offer up any more info as to where the rumour came from. This article's timestamp is 12:19pm