Cazaly Resources announced it has selected Pacific National Bulk rail to provide rail haulage services for its Parker Range iron ore project.

Pacific National, owned by Australia's leading ports and rail company Asciano Ltd., will provide capital items such as locomotives and wagons, and rail haulage services from rail head to the Port at Kwinana.

Cazaly Resources said the arrangement with Pacific National now completes a full mine to market solution for Parker Range iron ore project.

Earlier this week, Cazaly Resources announced it has signed an agreement with HWE Mining to provide financing for and the operation of the construction, mining, processing and transport of the ore to the rail head.

The mining company has also inked a deal with Euromin for the provision of a $30 million facility, primarily to fund the remaining capital costs of the project and to jointly provide marketing for the product.

"These arrangements are a major step forward for the potential development of the Parker Range iron ore project. On the assumption that final agreements are successfully negotiated then they will provide a framework that will greatly reduce the capital requirements of the company," said Cazaly in a statement.

The Parker Range Iron Ore Project is estimated to cost $78 million with additional $28 million for test work in the third year of mining. It is located 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.

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