Shares in Pilbara iron ore developer Aurox Resources (AXO) rose as much as 10.8% on Friday as the company said it has moved towards construction at its Balla Balla iron ore project in the West Pilbara.
The company said it signed a deal with engineering and manufacturing firm FLSmidth Minerals Pty Ltd and Siemens Ltd to engineer, manufacture and supervise installation of all major components required to commission its six million tonne per annum Balla Balla magnetite processing plant and related port infrastructure.
Aurox Managing Director Charles Schaus said the lump sum contracts have been tendered by both groups, and provide for the scheduled engineering work and secure key plant components.
"Securing lump sum contracts for the plant and port infrastructure is a huge milestone for Aurox and its shareholders," he said.
"It moves Aurox a major step towards our goal of becoming WA's first major magnetite producer."
The deal with Siemens will see it engineer, manufacture and install all major electrical systems including gearless drives for the grinding mills.
"The Balla Balla processing plant will be constructed to handle additional capacity, reflecting the company's strategy medium term to ramp up production from our initial six million tonnes target," Schaus said.
Aurox Resources is a Perth based minerals group, with its most advanced asset the 100% owned Balla Balla magnetite project in Western Australia.
AXO shares added 7 cents to 90 cents.
