Pilbara focused miner BC Iron has entered into an iron ore strategic alliance with emerging Brazilian development company Cleveland.
BC Iron will take a 5 per cent equity stake, at 64 cents a share, in Cleveland for approximately $6 million.
BC Iron and Cleveland will form a 50:50 joint venture to acquire and develop new projects in Brazil.
ASX-listed Cleveland owns and operates three projects in South America, the gold-focused Crixas hub in central Brazil, the iron-ore focused Amapa hub in northern Brazil and a small portfolio of copper-gold projects at Canela in central Chile.
The existing projects at Cleveland's Amapa hub will not at this stage form part of the alliance.
BC Iron's prime focus to date has been on its 50:50 Nullagine iron ore joint venture with Fortescue Metals Group.
Many of Cleveland's management team have previously worked with FMG on the Chichester project.
Cleveland non-executive director Russell Scrimshaw worked with BC Iron on the establishment of the Nullagine project.
BC Iron managing director Mike Young said Brazil had a vibrant iron ore industry with a very skilled and able workforce and had potential for further discoveries.
"In Brazil, I see a growing industry in a growing country," he said.
Cleveland's managing director David Mendelawitz said the alliance with BC Iron would allow his company to drive its growth plans beyond the Ferradura project while providing BC Iron "with exposure to the amazing potential of Brazil." .BC Iron shares trade were up one cent up $2.67. Cleveland shares last traded at 65 cents.
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