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WPG Resources completes Port Pirie land purchase to export Peculiar Knob DSO

WPG Resources (ASX: WPG) now has a gateway to export product from the company's Peculiar Knob DSO iron ore project south of Coober Pedy, with the purchase now complete of a key land position in Port Pirie.

The company can now build an iron ore receival, storage and load-out facility, with site remediation already underway with construction to kick off in weeks.

WPG Resources has forecast iron ore sales from June 2012.

The land is at the northern end of the Port Pirie CBD and is bounded by Ellen Street, George Street and the lead smelter.

At Peculiar Knob, the development plan includes sales at 3.3 million tonnes annually, with rail haulage of 11,200 tonnes per train six days per week to Port Pirie.

Deutsche Bank have signed a commitment letter to provide US$120 debt funding, with equity comprising $85 million raised in late 2010.