Emergent Resources has updated on the positive progress of its proposed JV with China Metallurgical Investment Group for the development of Emergent’s Beyondie Iron Project in the Mid West region of Western Australia.

Emergent announced in October 2009 that CMIC had successfully completed Due Diligence on its proposed USD 200 million development JV with Emergent for the Beyondie Iron Project and had entered a Binding Agreement for the CMIC/Emergent Beyondie Development Joint Venture.

The company advises that it has made positive progress towards securing final agreement on the terms of the Beyondie Development Joint Venture with its Chinese partner, CMIC.

The full suite of Shareholders’ Agreement, JV, loan and other related documentation has been exchanged and is presently under review by EMG and CMIC.

Mr Garry Hemming MD of Emergent said that "We are delighted with the excellent progress being made on the Beyondie Iron Development Joint Venture with our Chinese partners CMIC, and we look forward to concluding all relevant approvals to complete these Agreements. The Company also continues to make rapid progress on the development of the project itself, and will provide an update on the status of key elements of the project in the near future."

The Beyondie Development JV provides for a 50:50 JV, AUD 200 million funding by CMIC, and a placement of shares and options to CMIC to raise around USD 5 million and give CMIC an approximate 15% holding in Emergent.

As previously advised, Emergent has secured shareholder approval for this placement of shares and options to CMIC.

Under the terms of the Binding Agreement for the Development Joint Venture, the AUD 200 million in funding will be provided by the equity subscription of USD 100 million into the JV by CMIC as a sunk investment, and the facilitation of a loan of USD 100 million to Emergent (at 3% above Reserve Bank of Australia benchmark interest).

(Sourced from www.proactiveinvestors.com.au)