PERTH (miningweekly.com) – ASX-listed Metallica Minerals and its Chinese joint venture (JV) partner have started development work of the Urquhart Point heavy mineral sands (HMS) project, in Cape York, in which China's Ozore Resources owns a 33.33% interest following a A$5-million payment.
Under the JV, Ozore Resources would provide about A$7.5-million in funding to develop Metallica’s Urquhart Point HMS project, and to explore for other HMS and bauxite deposits on the nearby tenement areas, as well as north of Weipa.
Metallica said on Tuesday that the Chinese investor had committed to a final A$2.5-million instalment on the JV, which would take its shareholding in the JV to 50%.
First production from the HMS project had been targeted for mid-2015, and Metallica would be free-carried to expenditure of A$7.5-million, which was budgeted to bring the project to production.