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Ascot welcomes Port Hedland expansion plans

Ascot welcomes Port Hedland expansion plans

Photo by Bloomberg

21st March 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Diversified junior Ascot Resources has welcomed reports that the Port Hedland Port Authority (PHPA) was considering adding additional export capacity for iron-ore miners.

The PHPA was considering proposals for both inner- and outer-harbour developments at Finucane Island and Lumsden Point, which could lift the authority’s export capacity above 500-million tonnes a year, The West Australian reported.

The new facilities would likely be built and operated by specialist infrastructure companies.

“As a stakeholder, this is a positive development as it allows junior iron-ore companies such as Ascot the opportunity to access port capacity at Port Hedland,” Ascot chairperson Paul Kopejtka said on Friday.

Ascot recently signed a multimillion-dollar deal to acquire the Wonmunna iron-ore project, in the Pilbara, which has the potential to produce five-million tonnes a year of lump and fines products.

Under the terms of the agreement, Ascot would issue project owner Ochre Group Holdings with 88-million fully paid ordinary shares, along with an initial cash consideration of A$2-million. A further A$29.75-million would be payable within five years of the transaction completion date, with an interest rate of 5.88% payable on the additional consideration.

Edited by Creamer Media Reporter

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