Nevada Iron (ASX: NVI) non-executive chairman Mick McMullen has invested another almost $40,000 on market to increase his stake in the company to 4.2 million shares, a move that shows confidence as the company heads towards production at its Buena Vista Project.
McMullen acquired another 200,000 shares in early June, for an average entry price of just under $0.20 per share.
He was also granted a further 1.25 million options exercisable at $0.50 on or before 30 March 2015.
McMullen now holds 4.2 million fully paid shares and over 7.2 million options in Nevada Iron.
This was a move well supported by shareholders with 13.8 million votes for compared to 50,000 against.
Demonstrating the investor support Nevada Iron is receiving of late, Ashwath Mehra, a non-executive director ofNorthern Iron (ASX: NFE), recently took a 5.56% stake in the company, making him a substantial shareholder.
Nevada Iron is rapidly advancing towards production at the Buena Vista Project, with the company on track to begin commissioning before the end of 2012.
The company recently completed a review of the project to assess changing the scope of the project and optimising it where possible.
This review, while not yet complete, found that increasing the Phase 1 plant throughput from 4.8 million tonnes per annum to a minimum of 6 million tonnes per annum will be beneficial for project economics.
Also, scheduling higher grade mineralisation in the initial years of the project has been deemed possible, with substantial economic benefits.
Further upside stems from the development of a Phase 2 project, which will enhance the economics and make the project more attractive to offtake financing partners.
To more fully scope the project, Nevada Iron has committed to an aggressive exploration program targeting an increase in the existing JORC Resource, as well as a conversion of the known higher grade exploration targets and prospects to JORC Resources.
Buena Vista has an Indicated Resource on the West deposit of 100.2 million tonnes at 20.3% total iron, based on true density values.
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