IronClad signs deal with Chinese steel maker

IronClad signs deal with Chinese steel maker.
Iron ore explorer IronClad Mining has signed a deal with Chinese steel maker Wuhan Iron and Steel Corporation which could see the firms work together on IronClad’s South Australian projects. Under a memorandum of understanding, the companies will consider a joint venture that would see WISCO fully fund the development of IronClad’s Wilcherry Hill and Hercules Iron ore project through to the completion of a bankable feasibility study. The firms plan to establish a 50-50 joint venture at completion of the study, which would see the project produce up to 4 million tonnes of iron ore per year by 2011. The Chinese firm will now undertake due diligence on the projects, saying it would also consider taking a stake in IronClad as part of the deal. Shares in the firm were up 5.5 cents, or 42.31 per cent, to 18.5 cents at the close of trade after rising as high as 20 cents earlier in the day.