Australian Minerals and Mining Group says it has reached agreement to acquire Minemakers’ 80 per cent stake in the West Southdown iron ore project near Albany.
Under terms of the transaction, AMMG will issue Minemakers with 5 million ordinary shares and 2 million options exercisable at 20 cents.
AMMG managing director Ric Dawson said the acquisition was a significant addition to the company’s portfolio that could result in a significant reduction in capital costs, because of its proximity to the company’s existing developments.
“This strategic location eliminates the need to duplicate an additional slurry pipeline corridor and other infrastructure requirements,” Mr Dawson said.
Minemakers is selling its stake in the project as part of its non-core asset divestment strategy, as it focuses on the Woomera phosphate project.
AMMG stocks were steady at 12:54PM (WST), at 17.5 cents.