MagnetiteMines Ltd. and Lodestone Equities Ltd., acting as the SouthAustralian Magnetite Consortium, signed a nonbinding letter of intent withShandong Steel International Co. Ltd. to develop the magnetite resources of theMawson Iron Province of South Australia, according to a July 18 statement.

"A comprehensive cooperation with Shandong Steel wouldposition us to supply high quality magnetite concentrates for their new blastfurnaces at Rizhao and also open up other possibilities to place product withinthe Shandong Steel group," said Gordon Toll, chairman and CEO of Magnetite.