AMMG signs MoU No2

THE BOURSE WHISPERER: Australia Minerals and Mining Group, through its wholly-owned subsidiary Yilgarn Iron, has signed a further memorandum of understanding (MOU) with Queensland-based Anhui Lianghuai Resources, the wholly owned subsidiary of the Anhui Provincial Bureau of Coal and Geology.
 
Both parties signed an earlier MOU in August 2011 relating to the development of the AMMG Yilgarn iron ore projects.

The new MOU includes AMMG’s recently acquired Southdown Extension iron ore project, located approximately 80 kilometres from the Albany Port.

The signing of the further MOU is a result of a number of visits by AMMG to Anhui’s head office in Hefei and a number of visits by Anhui to AMMG’s projects in Western Australia.

AMMG said the new MOU provides both parties with a framework they can build on together over the upcoming months to determine whether agreement can be reached on the terms of a direct capital investment by way of a share placement by Anhui in AMMG or its subsidiary, Yilgarn Iron.

The second MOU targets a potential Heads of Agreement for a Joint Venture Agreement for the development of one or more of Yilgarn Iron’s projects.

 

Yilgarn iron ore project Location Map. Source: Company announcement 

AMMG, through Yilgarn Iron, has been actively exploring and extending its tenement base in the Yilgarn Craton, accumulating 13 projects extending over 3,184 square kilometres.

“The further MOU demonstrated that Anhui recognised the mineral potential of the company’s projects and was particularly interested in the close proximity of the project to the port and city of Albany, being only approximately 80 kilometres away,” AMMG managing director Ric Dawson said n the company’s announcement to the Australian Securities Exchange.

“With drilling at the Southdown Extension project scheduled to commence at the beginning of next calendar year, Anhui were particularly interested in this recent addition to the Yilgarn Iron project portfolio.

“Anhui plans to send a delegation to return to Western Australia at the time of drilling for a site inspection as part of their ongoing due diligence ahead of any possible future involvement in advancement of the MOU key targets.”