Metallica JV gets FIRB nod

THE BOURSE WHISPERER: Metallica Minerals (ASX: MLM) has received Foreign Investment Review Board (FIRB) approval for the Cape York heavy mineral sands (HMS) and bauxite Joint Venture.

The Joint Venture is between Oresome Australia Pty Ltd, a wholly-owned subsidiary of Metallica, and Ozore Resources, which is wholly-owned by a Chinese investor.

Under the JV, Ozore will provide a total of $7.5 million (of which $500,000 has already been received) to develop Metallica’s HMS Urquhart Point project, and explore for other HMS and bauxite deposits on its tenements near and north of Weipa, on the western side of Queensland’s Cape York Peninsula.

“The FIRB approval is the final Condition Precedent to the JV Agreement,” Metallica Minerals explained in its ASX announcement.

“The JV is expecting to receive a further payment of $4.5 million from Ozore by 11 September 2014.”

Metallica said once this payment has been received the Joint Venture will initiate site preparation works at the Urquhart Point HMS project, to be followed by exploration programs for HMS and bauxite, in late September 2014.

Ozore is required to pay the $2.5 million balance when the project’s development progresses further toward production.