Centrex Metals has announced the Australian Foreign Investment Review Board has approved the investment by Chinese steel producer Baotou Iron & Steel to acquire up to 50% of the proposed iron ore joint venture with the Australian company on the Bungalow magnetite deposit.
Under the iron ore joint venture, Baotou will pay a total of up to AUD 40,000,000 into a joint venture account to earn a 50% interest in the iron ore rights to Centrex mineral tenement EL3610 located 9 kilometres north of Cowell on Eyre Peninsula, South Australia.
Mr David Lindh chairman of Centrex said the FIRB approval marked yet another significant milestone for Centrex. He said that "The Company has announced a series of investments and government consents in the recent past that will help the Company to become a major player, over time in Australia iron ore industry."
He added that "We have been in discussions for many months and it is very pleasing that Centrex and Baotou can now accelerate exploration at Bungalow.”
Centrex has been appointed as manager for Stage 1 and Stage 2 with a joint venture company established to manage the Bankable Feasibility Study and operations. The company will be reimbursed approximately AUD 2.26 million out of the Stage 1 payments for exploration expenses incurred since signing the Heads of Agreement on September 20th 2007.
