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Cazaly, which hopes to establish itself as a major iron ore producer in the Yilgarn region of WA, has been in talks with Chinese and Japanese partners in recent months. However, it is believed that its latest deal involves neither.

Shares in the Nathan McMahon-headed junior were placed into a trading halt yesterday, pending an announcement ''regarding the finalisation of an agreement with respect to the development [of] the Parker Range iron ore project''.

Cazaly still hurdles to jump to bring Parker Range into production, including bedding down offtake and transport.

It wants to bring Parker Range, about 50 kilometres by road south of the Perth-Kalgoorlie railway, into production by the second half of next year, with shipping through Kwinana port the preferred export option.

To keep to that timeline it will need to begin construction in the second half of this year, which hinges on it getting the environmental all-clear.

Cazaly wants to begin mining at a rate of 2 million tonnes a year, increasing to 4 million. Its shares last traded at 49.5¢.

Sourced from www.smh.com.au