Iron ore hopeful Emergent Resources has struck a preliminary $200 million deal with China Metallurgical Investment Co to develop its Beyondie magentite prospect.

As flagged in The West Australian, the junior emerged from a trading halt this morning to confirm it had signed an MOU with CMIC to form a 50:50 joint venture to develop the prospect, which is located halfway between Wiluna and Newman. Emergent hopes to develop Beyondie into a three million-tonne-a-year concentrate operation.

The MOU also provides for a $4.9 million placement to CMIC at 45c.

Both sides have agreed to a three-month due diligence period, to begin this month.

The deal sees China further cement control of the Mid-West region, with Emergent seen as an attractive investment because of what it has flagged as a low-impurity magnetite ore body.

Emergent this morning also announced a wider $2.52 million share placement at 40c a share to sophisticated investors to boost working capital at the Beyondie project.

Shares in the junior were 11c higher at 64c at 9.27am.

RACHEL DONKIN