|Mineral Resources moves in at Mount Marion|
|Wednesday, 28 October 2009 09:59|
Miner to help develop Goldfields Lithium projectReed Resources and Mineral Resources will join together to develop the Mount Marion lithium project in the Goldfields region of WA in what has been termed a "company making" agreement.
Reed Resources managing director Chris Reed said the agreement with Mineral Resources would ensure the project was developed in a timely and cost effective manner.
"Mineral Resources has extensive experience in the construction and operation of successful low-cost mining operations in Australia and is the perfect partner to assist us to bring the Mount Marion lithium project into production in 2010," Mr Reed said.
"The agreement enables Reed to fast-track this project into production and without the need to raise capital or secure project debt."
Under terms of the agreement, Mineral Resources will build, own and operate the Mount Marion project's processing facilities and fund all development and operating costs.
Reed will be reimbursed for the expenditure it has incurred to date, and be free-carried through the evaluation stage.
A feasibility study is currently underway, and will confirm the parameters of initial production. The project is to deliver up to one million tonnes of ore a year to a Mineral Resources-designed and built start-up plant alongside Reed's existing Nimbus processing plant.
This will continue under a larger plant and increased production is required.
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