Cazaly Shares Surge on Rio Tinto Group Iron Ore Deposit Claims
June 18, 2008
June 18th (Bloomberg) – Cazaly Resources Ltd., which last year failed in a bid to win control of a Rio Tinto Group iron ore deposit, rose the most in more than three years in Sydney trading after lodging applications over another Rio project.
Cazaly, under an accord with Fortescue Metals Group Ltd., has made 29 license applications to prospect on Rio’s Rhodes Ridge project in the Pilbara region of the state’s northwest, Perth- based Cazaly said today in a statement. The project is owned by a venture with Hancock Prospecting Pty, controlled by Australia’s richest woman, Gina Rinehart, and Wright Prospecting Pty.
Cazaly rose 28.5 cents, or 88 percent, to 61 cents at 10:30 a.m. Sydney time on the Australian stock exchange, its biggest gain since Nov. 30, 2004. Fortescue, controlled by Australia’s richest man Andrew Forrest, rose 2.5 percent to A$10.71.
Cazaly lost a High Court appeal in April seeking to overturn a lower court decision rejecting its claims to another iron ore deposit also owned by Rio Tinto. The state’s Mining Warden will hold a hearing to consider the right to occupy the Rhodes Ridge land, Cazaly said today.
“Cazaly believes that the hearing will confirm that the land is open for mining and that there is no reason why the tenement applications cannot be granted,” the company said in the statement. The Rio venture has objected to the Cazaly-Fortescue applications, it said. Rio spokesman Gervase Greene couldn’t immediately be reached for comment.