June 2007 Quarterly Report & Appendix 5B
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This report is available to download as an Adobe Acrobat PDF file:
AXO000209_Correction to Quarterly Activities Statement.pdf (753 KB)
Aurox Resources Limited Quarterly Activity Highlights:
- Aurox completes 3M tpa iron ore bankable feasibility study
- Aurox signs second 3M tpa sales agreement
- $102 million placement, Balla Balla to be developed independently
- All resolutions passed at Company’s EGM held 20 June 2007
Summary
Balla Balla is the largest and highest grade titanomagnetite iron ore deposit in Australia. The project is located in the West Pilbara mineral field adjacent to key infrastructure, including gas and grid power, and is within 100kms of Australia’s largest iron ore shipping facilities at Port Hedland and Karratha. All Balla Balla tenements are granted and the environmental permitting and project licensing are well advanced and scheduled for completion at the end of 2007.
During the June 2007 quarter, the Company completed the bankable feasibility tudy (“BFS”) for the development of a 3 million tonnes per annum (“tpa”) iron ore concentrate project at Balla Balla. The project is underpinned by a 15-year, 100% off-take agreement with Chinese steel and vanadium producer Chengde Iron and Steel Group. On the 16th of July 2007 Aurox signed a second binding sales agreement with RockCheck Steel Group which will enable the Company to double the size of the Balla Balla project. The company is currently in discussions with study managers Lycopodium and associated consultants with regards to the engineering, mining and environmental modification required to increase magnetite concentrate production to 6 million tpa. A modular staged increase from 3 million to 6 million tpa iron concentrate production is under consideration.
Aurox also reached agreements to raise $102 million, comprising $90.6m from a placement of shares and convertible notes with a number of international and local institutions and sophisticated investors and a further $11.4m to Chinese steel group RockCheck Steel and Falcon Resources. The placements were undertaken to provide the funds necessary for Aurox to exercise its option to purchase the Balla Balla tenements as well as order and pay for long lead time capital items such as SAG and ball mills and commence resource development and reserve definition drilling of the titanomagnetite deposit outside of the BFS area.
The issue of the first 21 million shares, completed on 18 July 2007 raised $17.85 million (before costs). Shareholder approval will be sought at an EGM to be held 24 August 2007 for the placement of the remaining shares and convertible notes. A prospectus will also be issued in respect of the placement securities.