PERTH (miningweekly.com) – Iron-ore hopeful Ascot Resources has placed the development of its Wonmunna iron-ore project, in Western Australia on hold, given market conditions, with the company also seeking an official delisting from the ASX.

Ascot said on Tuesday that since acquiring the Wonmunna project in 2014, the company had made significant progress, including securing all material environmental approvals, finalising the native title agreement and advancing discussions with a number of parties relating to mine gate sales and port access.

The project comprises four deposits, including the SMM and EMM deposits, and contains a mineral resource of 84.3-million tonnes.

However, the company told shareholders that, in view of the current uncertainties in the iron-ore market, it had taken the decision to limit further activities at Wonmunna to enhance the value of the project through targeted exploration, and obtaining the further necessary approvals to underpin a potential future project financing.

The company would also investigate opportunities for corporate or asset transactions that would have the potential to enhance the value of the project or the company itself.

As a result of the adjusted timetable at Wonmunna, Ascot had also taken the decision to delist from the ASX, saying it would be in the best interest of all shareholders.

The company said the value of the Wonmunna project was not reflected in the price of Ascot shares traded on the ASX, which dropped from a high of 21c each in September 2014 to 4.5c each following the acquisition of Wonmunna.

The Ascot board felt the current share price reflected both a general lack of investor interest in preproduction stage resource companies, as well as poor sentiment for junior iron-ore players.

The delisting from the ASX was also expected to deliver ongoing compliance cost savings, allow management to focus on value-adding activities at Wonmunna, and to investigate new opportunities and provide more flexibility in structuring any new transactions.

Shareholder approval for the proposed delisting would be sought at the company’s annual general meeting on November 13.