CHARTER PACIFIC IN THE BOX SEAT AFTER BUYING PERMIT

Written on the 25 September 2014 by Nick Nichols

CHARTER PACIFIC IN THE BOX SEAT AFTER BUYING PERMIT

CHARTER Pacific Corporation (ASX: CHF) is in the box seat to negotiate a partnership deal for its iron-ore deposit in Mauritania after securing $US3 million in funding to buy the deposit permit.

The Gold Coast investment company, better known for passive investments in ASX-listed shares, says it has been in discussion with a number of parties that have discussed joint-venture proposals and off-take agreements for the West African venture which could be in production in as little as nine months.

Charter Pacific announced this week that its subsidiary, Legleitat Iron Mauritanie SA, has finalised first-round funding for the acquisition of the advanced hematite deposit permit 2183 in Mauritania.

The funds have been forwarded by local partner WAFA Mining & Petroleum in return for an extra 10 per cent interest in Legleitat. Charter will retain 60 per cent, while the Mauritanian Government holds 20 per cent.

“We now own the permit,” says Charter Pacific’s executive chairman Kevin Dart (pictured).

“We’ve had three to four parties waiting for us to finalise this.

“These parties have expressed interest given the low cost of production, existing infrastructure and the other benefits of the Legleitat project.

“We’re talking to some very large companies, although none of them are Australian.”

Charter Pacific has held interests in iron ore exploration permits in Mauritania since 2010 and the 12.5 million tonne Legleitat resource is located adjacent to its current Kaoua El Khadra Permit 792 exploration tenement.

Charter Pacific bought Legleitat earlier this year for just $US10 million, to be paid over five years. The previous operator spent $US45 million in developing the mine which has lain dormant since November last year.

Dart admits the fall in iron ore prices has dampened investor interest in the sector, but he says Legleitat is a low-cost mine that will target nearby markets in Europe, including Turkey, Spain, Italy, France and Germany.

Ore is expected to be shipped from Legleitat for about $US50 a tonne free on board.

Glencore is spending $US2 billion to develop its nearby iron ore resource in Mauritania, with iron ore expected to land at $US20-30 per tonne free on board.

“The advantage that we have is our cost of production,” says Dart.

He says that Legleitat will deliver iron ore below some of the cheapest producers in the market.


Author: Nick Nichols

Latest News

DREAMWORLD PARENT COMPANY DEMOTES CEO DEBORAH THOMAS

ARDENT LEISURE, the parent company of Gold Coast's Dreamworld theme park, has reshuffled its core leadership w...

MELBOURNE SHOPPING CENTRE SELLS FOR $48m AS CHINESE DEMAND RAMPS UP

A MELBOURNE shopping centre has been sold for $48 million, bringing the total spent by Chinese investors on Victor...

HOW WEDDING WOES INSPIRED A BOOMING BUSINESS FOR MEGAN ZIEMS

WHEN she was dress shopping for her wedding in 2010, Megan Ziems (pictured left) was disappointed to discover a ma...

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter