Padbury Mining finalises acquisition of IP developed by Yilgarn Infrastructure

Padbury Mining (ASX: PDY) has completed the $2.25 million purchase of intellectual property (IP) for rail and port infrastructure to service the mines of Western Australia’s Mid West region.

The transaction for IP developed by Yilgarn Infrastructure Ltd for building an open access, multi user rail network was finalised following approval from Padbury shareholders at a general meeting on 13 June, 2011.

The IP will be vested in a wholly owned Padbury subsidiary Midwest Infrastructure Pty Ltd.

The Mid-West region has recently grown in stature as a significant iron ore province. The provision of rail and port infrastructure is of great importance to the development of the Mid West mining industry.

Gary Stokes, Padbury's managing director, said “the purchase of the IP gives us a viable option to move forward, with the capacity to contribute to an infrastructure solution for the entire Mid West should the current infrastructure proponent be unable to proceed with its proposal in its current form.”

“The data includes detailed engineering studies, project definition documents, financial modelling, Chinese investment agreements, financing term sheets and associated legal documents and, crucially, a viable low-cost service-based commercial model for the carriage of ore from the various proposed mining operations to Oakajee."

Padbury said it is bullish it can help facilitate a win-win outcome for its own Peak Hill project as well as other Mid West mines by working with others in the region.

Located about 450 kilometres north east of Geraldton, Peak Hill is in the same mineralised region as other major Mid West iron ore projects such as Weld Range (Sinosteel Midwest Corp), Jack Hills (Crosslands Resources) and Mt Gould (Atlas Iron (ASX: AGO)).

Peak Hill hosts an Inferred JORC Resource of 850 million tonnes at 27.3% iron at Telecom Hill, with the best intersection to date 198 metres at 34.2% iron.

Importantly the resource was defined from just 4 kilometres of a 10 kilometre strike length, and therefore is likely to see a significant boost to the resource base in 2011 from further drilling.

Peak Hill has an exploration target of 3.5 to 5 billion tonnes at 25% to 35% iron, and covers a significant 2500 square kilometres.

The company is planning to develop the project over the next three years, with production targeted for 2015-2016.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17768/padbury-mining-finalises-acquisition-of-ip-developed-by-yilgarn-infrastructure-17768.html