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

INTEREST IN RETAIL PROPERTY SPIKES AS INTERNATIONAL BRANDS LOOK TO ROLL OUT IN AUSTRALIA

AN influx of international retail brands into Australia over the next five years are expected to push up demand for f...

MANTRA BOASTS OF SUCCESSFUL HOTEL INTEGRATION AS NET PROFIT GROWS 15 PER CENT

MANTRA Group (ASX:MTR) CEO Bob East has praised the performance of the company's new Honolulu Hotel as it posted ...

WHITEHAVEN TRIPLES EARNINGS, PAYS DOWN DEBT AFTER COAL PRICE TURNAROUND

THE HIGH coal price has allowed Whitehaven Coal to triple earnings and pay down a large portion of its debt in the fi...

BABY BUNTING BUOYED BY CLICKS AND BRICKS PERFORMANCE

BABY Bunting has grown sales 18.1 per cent to $135.1 million in the first half of FY17, sweetened by the opening o...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter