Perth, Australia-based Cleveland Mining Company Ltd. announced Friday that it has converted the Memorandum of Understanding for the Ferradura iron ore project in Brazil into a binding Option to Purchase Agreement. The original MOU was announced in February 2012. Cleveland said it believes the Ferradura Project will support a 5 million metric ton per year operation.
Currently, Cleveland Mining is in advanced negotiations with multiple Asian Steel industry groups and institutions to provide initial, project‐level funding through Hong Kong subsidiary. The project area is only 80 kilometers from an existing port. The port, road and electricity generation currently under construction is expected to support an initial 5 million mt per year production target.