Minemakers (ASX: MAK) shares jumped about 20% today, following media reports that major Indian company NMDC has plans to acquire the company’s Wonarah rock phosphate reserves.

Legacy Iron Ore (ASX: LCY) has also recently reported that due diligence is underway to finalise negotiations on Minemakers' Wonarah phosphate project and Atlas Mining's (ASX: AGO) Ridley iron ore project.

Shares in Legacy Iron Ore were also 10.34% higher at lunchtime at $0.16.

NMDC recently acquired a 50% holding in Legacy Iron Ore.

Minemakers today confirmed discussions with representatives of NMDC regarding the development of the Wonarah Project, however it said no commercial outcome had been agreed.

Shares in Minemakers reached a high of $0.355 today, before dropping back to the $0.33 mark – still a 17.86% improvement on Thursday’s closing price of $0.28.

NMDC finance director S. Thiagarajan has reportedly said NMDC plans to take up a 50% stake in Wonarah.

The proposed acquisition is part of A$800 million of capital expenditure planned by NMDC over the coming months, as the company seeks to acquire overseas mineral resources.

In its quarterly report, released on January 31, Minemakers said negotiations regarding a joint venture with NMDC for the Wonarah projece were proceeding slower than anticipated.

Wonarah is located in the Northern Territory and hosts a Resource of almost 800 million tonnes at more than 18% phosphate, with a 10% cut-off grade.

The share price jump earned Minemakers a speeding ticket from the ASX. The company responded citing the talks with NMDC, the recently released quarterly report and generally strong upward movement of the phosphate sector this morning.

source:mines and money