Adriana grabs land for iron ore port in Brazil

Vancouver – Seizing a development opportunity afforded by surging demand for iron, Adriana Resources (ADI-V) is optioning shoreline property in Brazil to develop an iron ore port facility to provide a transportation portal for small and medium sized iron producers in the state of Minas Gerias.

Adriana’s share price moved up 37.5% on the news, closing up 30 cents at $1.10.

The option agreement is for three contiguous land parcels covering almost 1 sq. km of shoreline, arranged through a newly formed company called Brazore Holdings. Adriana owns 75% of Brazore Holdings; Athena Resources, a private US-based investment firm, owns the remaining 25%.

Through Brazore, Adriana plans to build a shallow water trans-shipment facility capable of handling 18 million tonnes of iron ore annually. “Lighters”, shallow draft self-loading vessels, would transport iron ore from the facility to a larger vessel anchored permanently offshore where ore would be mvoed onto ocean-going ships. Ore would be delivered to the port via railway.

In preparation, Adriana agreed in January to a strategic relationship with B.C.-based Seabulk Systems to work together in developing large scale mineral systems. Seabulk is working on a scoping study on the Brazil port site that will provide the basis for a bankable feasibility study. Seabulk’s president and CEO Sid Sridhar said in a news release that demand for metals from countries like China and India has created “some of the best infrastructure opportunities in recent years.”

Adriana is to fund Brazore’s business plan in three tranches. By October 20, 2007, Adriana must provide US$5 million, of which $500,000 has already been paid. By November 2007 Adriana has to hand over US$18 million more, and by August 2009 the company must fund a further US$33 million. These funds are intended to cover the purchase of the port site, advanced engineering and feasibility studies, procurement, and port development.