BC Iron (ASX:BCI) and Fortescure Metals Group (ASX:FMG) have secured a $50 million funding injection for their Nullagine iron ore joint venture.
BC Iron said the funds will allow the mine to reach its target of commencing production in late 2010.
The transaction comes in the form of pre-payments for the first take-off agreements regarding the mine, which have recently been concluded.
The JV has arranged to supply 20 million tonnes of iron ore to a Hong Kong trading company over the next eight and a half years.
BC Iron separately announced it has agreed to issue 8 million options to the Hong Kong company. The options will have a two year term, with 6 million options exercisable at $1.35 and 2 million exercisable at $1.50.