Aurox Resources Limited (ASX:AXO) Secures Magnetite Shipping Facility Agreement With Port Hedland Port Authority
June 23, 2008
June 23rd (ABN Newswire) – Pilbara iron ore developer Aurox Resources Limited (ASX:AXO)(PINK:AUOXF) (“Aurox”) has taken a further step in the development of its Balla Balla magnetite project, securing an Agreement with the Port Hedland Port Authority (“PHPA”) for a magnetite shipping facility.
The Agreement, which includes dewatering, stockpiling and ship-loading at the Utah Point Multiuser Facility, is another step toward becoming WA’s first magnetite iron ore producer from Balla Balla, which is located near the Pilbara coast.
Aurox has secured an area at Utah Point (see satellite photo) designed to hold a linear stockpile capable of servicing a shipping operation in excess of 10 million tonnes per annum. The company will install and operate its own dewatering, stacking and reclaiming equipment, with the capacity to feed the PHPA out-loading conveyor system at its design rate of 7,500 tonne per hour.
Aurox Managing Director Charles Schaus said the port agreement was a major milestone for Aurox and its shareholders.
“Access to port facilities is clearly a critical element in the development of a project such as this – without a port there is no project,” Mr Schaus said.
“The signing of this agreement further de-risks the Balla Balla project, and keeps us on track toward first shipment of magnetite concentrate in the second half of 2010,” Mr Schaus said.
Aurox will transport the Balla Balla magnetite concentrate 110 kilometres from the mine site to Utah Point via a buried slurry pipeline, avoiding the traffic, dust and noise associated with a trucking operation. The slurry product will be dewatered at the port with the majority of process water returned to Balla Balla for reuse. However, a small quantity of water will be retained at the port for dust suppression and wash down purposes.
Aurox will prepay a Port Facility Charge which is refunded by the PHPA through a formulated reduction of port utilisation fees against future Balla Balla tonnage shipped over the Utah Point Berth. The term of the Agreement is 15 years.
“Although Aurox will be the biggest user of the Utah Point facility, our operations will have no adverse impact on the Port Hedland Community,” Mr Schaus said.
PHPA Chief Executive Officer Andre Bush stated “We would like to welcome Aurox Resources as a cornerstone partner in Utah Point. Securing Port access removes a critical barrier to entry for Aurox and we’re pleased to facilitate the provision of this important piece of infrastructure.”
June 2, 2008
June 1st (The West) – Buoyed by Atlas Iron’s successful capital raising, fellow iron ore junior Brockman Resources was last night working on an up to $100 million book-build for its billion-tonne Marillana project in the Pilbara.
Brockman put its shares in a trading halt yesterday morning, with the stock sitting at $2.70, only 30¢ below its record close three weeks ago.
The timing of the capital raising is opportune given that a year ago Brockman was trading as low as 35¢.
It is understood Patersons Securities was arranging a book-build of existing shareholders and new investors to raise between $75 million and $100 million.
The book-build should be finalised by late next week, with the placement price expected to be at a discount of between 10 and 20 per cent to Brockman’s last trade. Shareholders are likely to have to approve the capital raising.
It is unclear whether Brockman’s board, led by former Arthur Andersen Perth managing partner Ross Norgard who owns $47 million worth of scrip, will participate in the capital raising.
Atlas raised $100 million at $2 a share — a 10 per cent discount to its prevailing price — through rival broker Hartleys a month ago.
The success of the raising proved the market’s appetite for up-andcoming iron ore producers, despite the continued upheaval on global money markets.
Participants in the raising have been rewarded handsomely, with Atlas shares closing at $4.08 yesterday. Atlas is more advanced than Brockman and expects to be producing first iron ore from its Pardoo project east of Port Hedland later this year.
Brockman is raising the funds to finance a feasibility study for Marillana, which contains 1.1 billion tonnes grading an average 44.2 per cent.
Brockman is eyeing first production next year.