FIRB approval for Beyondie iron ore project joint venture

This represents a significant step in the development of the Beyondie Project, located in the Mid West region of Western Australia, which is the subject of the joint venture.
The FIRB approval follows the signing of a Binding Agreement between Emergent and CMIC last October to proceed with the A$200 million 50:50 joint venture. It covers the development of the Beyondie Project to commence mining operations with an initial targeted production of 3Mtpa of magnetite concentrate, plus a share and option placement to CMIC to raise $5 million.
Under the terms of the Beyondie Development JV a company has been incorporated to manage the project. Beyondie J/V Operation will initially be funded with an injection of A$200 million of equity provided equally by CMIC and Emergent.
CMIC under the terms of the Joint Venture Agreement (JVA) will facilitate a loan of $100 million to Emergent (at 3 per cent above Reserve Bank of Australia benchmark interest repayable from earnings with a term of 6 years from drawdown) to enable the company to subscribe for its equal share of the JV.
Emergent’s chairman, George McMaster said that he welcomed the FIRB approval decision by the Commonwealth Government.
“The FIRB approval received today is a key step forward in the Beyondie Development Joint Venture with our Chinese partners CMIC and we look forward to continuing to work with them to develop the Beyondie Project into a world class magnetite mining operation,” he said.