Emergent Resources update on Beyondie iron ore project

Tuesday, 20 Oct 2009

Emergent Resources Limited is pleased to announce that China Metallurgical Investment Co Limited has successfully completed its due diligence on its proposed Development JV for Emergent's Beyondie iron ore project in Western Australia's Mid West Iron region.

On July 3rd 2009, Emergent announced that it had entered into a commercial in confidence nonbinding MoU with CMIC for the development of the Beyondie Iron Project, subject to the satisfactory completion of due diligence and completion contracts, to achieve the commencement of mining operations with an initial targeted production of 3 million tonnes per annum of magnetite concentrate.

The MoU provided for the establishment of a 50:50 development JV, the provision of AUD 200 million funding for the project by CMIC and a placement to CMIC of 8,553,971 shares at AUD 0.45 per share to raise around AUD 5 million and give CMIC an approximate 15% holding in listed Emergent Resources Limited.

Emergent and its legal representatives will now meet with CMIC and its legal representatives in Beijing next week to further the formal contract process to establish the Beyondie 50:50 development JJV.

Mr Garry Hemming MD of Emergent said that "We are delighted that China Metallurgical Investment Co Ltd has successfully completed its due diligence process and we can now work toward establishing a formal Development Joint Venture with CMIC. They are a partner of the highest quality and we look forward to working with them to develop the Beyondie Iron Project to its full potential as a significant high grade magnetite concentrate producer."