Australian miners IronClad Mining Limited and Trafford Resources Limited, participants in the South Australia-based Wilcherry Hill iron ore joint venture, have announced that they have signed a memorandum of understanding (MOU) with China's MCCM Capital Management Co. Ltd (MCMC), under which MCMC can earn a 50 percent interest in stage one of the project by agreed expenditure of AUD$35 million (US$32.6 million). The MOU provides for a total of 120 days for the sides to reach a joint venture agreement for stage one.
Upon completion of MCMC's expenditure, the stage one of the joint venture will provide MCMC with 50 percent, Ironclad with 30 percent and Trafford with 20 percent. IronClad retains 80 percent of the remainder of the Wilcherry Hill and Hercules projects.
Wilcherry Hill, which lies 45 km north of Kimba, Pilbara, is expected to begin production of its high quality, low contaminant direct shipping ore (DSO) magnetite late this year.