CMIC seeks more funds for Emergent project

Emergent Resources yesterday said its Chinese joint venture partner, China Metallurgical Investment (CMIC), was looking for extra funds to continue its investment in the Beyondie iron ore project.

Emergent Resources yesterday said its Chinese joint venture partner, China Metallurgical Investment (CMIC), was looking for extra funds to continue its investment in the junior’s Beyondie iron ore project in Western Australia.

Under the terms of the initial agreement in July this year, CMIC would pay $200 million to acquire a 50% stake in the project, while it had a production rate of three million tonnes per annum, AAP reports.

CMIC will seek additional funding in order to retain its stake so the project can enter the second stage of production at a rate of eight million tonnes per annum.

The placement of Emergent shares to CMIC would raise around $5 million and provide a 15% stake in the company.

The deal is subject to approvals by Emergent shareholders and the Foreign Investment Review Board.

CMIC acquired Cape Lambert Iron Ore’s project in the Pilbara region last year.