New York, US-based iron ore mining company WorldVest, Inc., doing business as Iron Mining Group (IMG), has announced that its wholly-owned subsidiary, Chile Inversiones de Minerales (CIM), has signed a letter of intent for the acquisition of 70 percent in an existing iron sand development project in Coquimbo, Chile.
According to an IMG statement, as an element of the agreement, the company will assume control of two new port development concessions allowing for the construction of cape-sized ports adjacent to the reserve with monthly loading capacity up to 900,000 metric mt.
Based on studies completed in 2009 by a Chilean university, the property is believed to contain two interrelated iron ore deposits; approximately 5 million metric tons of recoverable high-grade iron ore located on La Serena Beach and an additional estimated 75 million metric tons located on the ocean floor.
With iron ore CIF prices currently exceeding $140/mt, the current total value of these iron ore deposits is greater than US$11.2 billion, with mining anticipated over the next 15 to 20 years.
Upon completing this transaction, CIM will commence iron ore processing operations on this site with initial scheduled monthly delivery of up to 200,000 metric tons of iron ore against existing Chinese purchase contracts beginning in the first quarter of 2011.
"The acquisition of the La Serena Beach Reserve in the Coquimbo Region positions Iron Mining Group to begin 2011 producing iron ore from mines in three different regions of Chile," said CEO, Garrett K. Krause.