Foyson Resources hunts for iron sand

 AUSTRALIAN company Foyson Resources has received exploration funding of A$2 million (K4 million) from TVI Pacific Inc for Phase 1 of the Amazon Bay iron sands joint venture in Papua New Guinea.

Amazon Bay is located about 270km southeast of Port Moresby and runs along the southern coastline of PNG east of Port Moresby for about 140km.

Foyson focuses on investing and developing a range of activities in the resource sector.

By providing the exploration funding, TVI has earned a 10% interest in the Amazon Bay Project.

This is significant for Foyson, implying a A$20 million (K43.26 million) value for its iron sands project, while itself being capitalised at just A$2 million.

The Amazon Bay project has been further advanced with the PNG Mineral Resources Authority granting Foyson an additional 652sqkm, covering over 50k of coastline prospective for iron sands.

TVI plans to focus its technical and financial resources on fast tracking the development of an operating mine at Amazon Bay.

The two companies have also agreed to jointly identify a suitable resource project, which can provide near-term cash flow to Foyson and move the company from an explorer to a producer.