Apollo Minerals (ASX: AON) has signed a non binding Memorandum of Understanding (MOU) with Sinom Holdings Co. Ltd (Sinom) to advise on a Chinese strategic partner for Apollo's Mt Oscar Iron Ore Project in the Pilbara Region in Western Australia.
The MOU is aimed at advancing discussions to secure an exploration and development agreement for the Mt Oscar Iron Ore project, where the Company has outlined a significant magnetite iron ore target and has recently been granted an iron ore exploration licence.
Apollo is currently in discussions with a number of Chinese interested parties and three of these Chinese parties have already visited the Mt Oscar site.
Of interest to investors, Mt Oscar is one of the few remaining Pilbara magnetite deposits with no investment (yet) by Chinese or foreign interests. two sales (Cape Lambert and Sino Iron/Balmoral) of larger projects - occurred during advanced exploration.
This shows the potential for Apollo to add value by defining an initial Mt Oscar resource (planned for 2010) and moving towards a Feasibility Study (2011).
The MOU contemplates that Sinom will assist Apollo in finalising an agreement for exploration and development of its Mt Oscar Iron Ore project with a key Chinese strategic partner and provide Apollo with expertise and assistance in the sale and marketing of iron ore from its Mt Oscar Iron Project.
As a resources strategic investor and iron ore trader, Sinom is seeking investment opportunities and long term co-operation relationships with Australian mineral companies and Apollo fits the criteria with its highly prospective magnetite project.
Sinom has headquarters in Hong Kong and offices in Shanghai, Beijing, Jakarta, Perth, Mongolia, Nigeria and Singapore.
New offices are planned for the Philippines, Kyrgyzstan, Chile and Mexico.
In China, Sinom is also stated as "one of the top iron ore importers and chartering service providers for the steel industry". And one of the first 118 authorised import companies of iron ore in China. The Sinom Group's annual sales of iron ore are between 5 to 6 million tonnes.
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