China Sinoz joint venture to invest in West Australian iron ore project

Laconia Resources Australia has reached an agreement with China’s joint venture Sinoz Mining Investment Group to jointly explore and develop its Mooletar iron ore project in Western Australia.

According to the joint venture agreement, Sinoz will invest $7.5 million over the next two years to obtain 80% of the project's shares in three phases. The first phase will invest US$1 million to fund the exploration project for the Mooletar project; the second phase will further invest US$1.5 million to enable Sinoz to obtain a 50% stake in the project; the third stage will invest US$5 million and increase its shareholding ratio to 80. %. Laconia will manage the project's exploration project and hold 20% of dry shares before making mining decisions.

The joint venture will have the sole iron ore mining rights of the Mooletar project, but Laconia retains the mining rights of gold and other minerals. At present, the project has defined exploration targets of 216 to 264 million tons of iron ore with an average iron grade of 30% to 35%. Sinoz will conduct due diligence, and it is expected that the project will soon begin exploration of the project after the completion of this work.