The trading halt in shares of BC Iron has been turned into a suspension, as the mining junior continues to negotiate the details of access to Fortescue Metals Group's rail and port facilities in the Pilbara.
BC Iron has secured its first offtake agreement for its Nullagine project in the Pilbara, with the contract starting from 2010 over a minimum five-year period.
The global economic turmoil has prompted West Perth-based BC Iron to review a smaller start-up operation for its Nullagine iron ore project in the Pilbara which could save its some $80 million in development costs.
BC Iron Ltd will move to feasibility study stage over its Nullagine iron ore project in the Pilbara, following a scoping study that estimated a capital cost of $85 million.
Fortescue Metals Group subsidiary The Pilbara Infrastructure Pty Ltd and Perth-based exploration company BC Iron Ltd have signed a memorandum of understanding for the provision of bulk commodity transport service for its Nullagine Iron Ore Project.
Alkane Exploration Ltd and the privately-owned Randolph Syndicate will combine their adjoining iron ore exploration tenements with Consolidated Minerals to form a new company, BC Iron Ltd, set to raise $6 million in its IPO.
