Austrlia-based Emergent Resources announced on Friday it would form a joint venture with China Metallurgical Investment to develop its Beyondie Iron project in Western Australia, the Australian newspaper reported.

Emergent revealed that the agreed joint venture would provide 200 million Australian dollars (159.3 million U.S. dollars) to fund the project.

The mine, in the state's mid-west iron ore region, will initially target production of three million tonnes a year of magnetite concentrate.

The Perth-based company has also agreed to place about 8.6 million shares to China Metallurgical Investment at 45 cents each, together with a 1-for-2 option entitlement of about 4.3 million shares at 27 cents each, exercisable at 20 cents on or before September 30, 2010.

The placement will raise about 4.9 million Australian dollars (3.9 million U.S. dollars) and provide working capital for the Beyondie Iron project.

Source:Xinhua