Australian iron ore developer Apollo Minerals has signed a non-binding memorandum of understanding (MoU) with a diversified international company for the development of Kango North Iron project in Gabon, West Africa.
The project is a potential near-term, low-cost development asset, which is situated around 70km from coastal export infrastructure, 20km from existing rail and power networks and near to the emerging West African iron ore precinct.
Under the terms of the MoU, the undisclosed partner can fund drilling and delineation operations of high grade DSO and beneficiable iron ore, estimated at around $4m to acquire up to 50.01% equity in the project.
Apollo and its partner will jointly manage the exploration programme at the Kango project, with the former holding a 70% interest in the project and the partner holding the remaining 30%.
The project is said to have significant DSO-grade mineralisation, with preliminary metallurgical test work indicating the potential to produce quality iron ore concentrates at relatively high mass yields.
In the wake of these estimations, Apollo stated that the project can develop a low-cost, high-potential iron ore mine in a prime coastal location in one of the world's pre-eminent emerging iron ore provinces.
Subject to agreeing formal documentation, a binding definitive agreement will be entered into before the end of first quarter of this year.
Meanwhile, Apollo will continue with the on-going mine development concept study and follow-up field mapping and sampling.
Apollo intends to commence drilling and development phases of the project shortly and has begun a selection process to engage a group to prepare the environmental impact assessment report.
Image: Apollo Minerals' Kango North Iron project in Gabon, West Africa. Photo: courtesy of Apollo Minerals Limited.