Cazaly Resources announced it has finalised a financing facility and off-take arrangement for its Parker Range iron ore project.

In a statement, Cazaly Resources said it has signed a Memorandum of Understanding (MoU) with Euromin S.A. covering an off-take for a minimum of 20 million metric tonnes of iron ore production. The MOU also included a financing facility of up to $30 million primarily for the construction of post facilities.

Cazaly Resources said the facility and offtake agreement is conditional to the allocation of port access, due diligence, board approval and the finalisation of the mining agreement with HWE Mining.

The deal was arranged by Tennant Metals, the leading independent Australian metal and bulk commodity trader.

Yesterday, Cazaly Resources announced it had signed an MoU with HWE Mining for the development of its Parker Range project. The joint venture between Cazaly Resources and HWE Mining provides the framework for engineering, procurements, construction, operate and maintain (EPCOM) contract.

The Parker Range Iron Ore Project lies approximately 15 km southeast of Marvel Loch in the Yilgarn Iron Ore Province and approximately 60 kilometres by road south of the Perth-Kalgoorlie railway. The project is estimated to cost $78 million as initial capital with further $28 million for test work in the third year of mining.