Adelaide based Centrex Metals said that financial closure has been completed for its iron ore joint JV with a Chinese steel giant.

The deal with Baotou Iron & Steel is for the company's Bungalow prospect near Cowell on Eyre Peninsula. Baotou will transfer USD 8 million into a JV account.

Mr Alistair Watts exploration manager at Centrex said that it is a big step for the magnetite project. He added that "The key is that we've actually received the funding for the Bungalow joint venture project and that in itself represents a significant commitment from our Chinese partners and it provides a lot of confidence in the project going forward."

(Sourced from www.abc.net.au)