Cazaly Resources is bringing in a partner at its Parker Range iron ore project in the Yilgarn in a deal that could be announced as early as today.
Talk at Diggers and Dealers yesterday was that the interested party was Asian, but not Chinese, and had deep pockets but Cazaly boss *Nathan McMahon *was keeping schtum.
Cazaly wants to bring Parker Range into production as early as next year but has yet to secure the port space it needs after missing out at Kwinana to Mineral Resources.
The group's back-up plan is to ship out of Fremantle initially and move to Esperance, but the Fremantle option has encountered some opposition.
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CAZALY Resources is expected to come out of a trading halt later this week having cut a development deal for its Parker Range iron ore project.
Cazaly called a halt to trading in its shares yesterday, ahead of an announcement about a commercial transaction.
The development deal is understood to be with a significant non-Chinese Asian partner, with Korea's POSCO mooted as the most likely candidate.
Potential partners would want an off-take deal for the project's iron ore in exchange for capital for mine and infrastructure development.
Cazaly wants to export up to 4.6 million tonnes of iron ore from the the Parker Range project, 400km east of Perth.
The project is in the emerging Yilgarn iron ore region, which also hosts the Jupiter Mines Mt Ida project.
Jupiter Mines is controlled by former BHP Billiton boss Brian Gilberton's Palinghurst Resources, which has a tight relationship with POSCO.
An announcement on the future of the Parker Range project is expected to be made before the end of the week.
Cazaly last traded at 35c.
CAZ Price at posting:
35.0¢ Sentiment: LT Buy Disclosure: Held
