Cazaly Resources eyes Asian partner to help Yilgarn iron ore project
* Sarah-Jane Tasker * From: The Australian * August 03, 2011 8:16AM
IRON ore hopeful Cazaly Resources is expected to announce today an alliance with an Asian party to progress its Yilgarn iron ore project.
The Perth-based company was placed into a trading halt yesterday pending an announcement, which is expected today.
Cazaly owns the Parker Range project in Western Australia?s Yilgarn region but its progress has been stalled by its lack of port options, after being rejected from the Kwinana and Fremantle ports to ship its ore.
The company, which is targeting 1.4 million tonnes per annum in the first stage of production from quarter one next year, is believed to have struck a deal with an Asian group to form an alliance for the Parker Range project.
The Australian understands that it is not a Chinese group but is an entity with significant cash.
Cazaly was said to enter the deal as its project would be at a stalemate until it could access the Esperance port in 2013.
The deal is said to provide Cazaly with the cash backing to pursue other options and push ahead with its project while it awaits access to Esperance port.
CAZ Price at posting:
35.0¢ Sentiment: LT Buy Disclosure: Held
