Iron ore junior Aurox Resources Ltd (ASX:AXO) has signed a binding agreement with Chinese engineering and services provider Metallurgical Corp of China, for assistance with the development of its $1.8 billion Balla Balla iron ore project near Port Hedland.
The company says the deal involves China’s MCC providing engineering, procurement and construction services and assistance in financing the Balla Balla project.
The provision of these services is conditional on MCC helping Aurox to secure debt finance from Chinese banking institutions.
Aurox is aiming for 10 million tonnes a year of magnetite concentrate from Balla Balla, with first production expected to be around 6 million tonnes a year from 2012.
Aurox Resources posted a loss of $30.6 million for the 2009 financial year.