FairStar Resources has signed a native title agreement that takes it a step closer to obtaining a $300 million funding facility for the development of its Steeple Hill iron project in the eastern Goldfields.
FairStar announced today it had entered a native title mining agreement with the Central East Goldfields Peoples Native Title Claimant Group, for ongoing exploration and production at Steeple Hill, located 100 kilometres east of Kalgoorlie.
The agreement fulfils one of three major conditions for the company’s $300 million debt facility, which is yet to be finalised but was first announced in October.
The remaining conditions are FairStar securing a mining lease for the tenements, and securing off-take agreements for a “substantial part” of the ore produced from the mine.
“This is an extremely important and significant milestone for FairStar’s ongoing commitment to get Steeple Hill into production for the benefit of our shareholders,” managing director Kevin Robertson said.
“The board wants to thank the Central East group for their work and commitment in negotiating this agreement, which we believe will deliver long-lasting benefits to the local community.
“We are very pleased the major focus of the agreement is on working with the Central East Group’s strategic plan for developing sustainable and long-lasting relationships to deliver better outcomes for their community for many years to come.”
FairStar owns a 100 per cent stake in the Steeple Hill project, which it believes has the potential to produce direct shipping ore with grades of more than 60 per cent ferrous.
At 9:54AM FairStar’s stock had spiked 13.9 per cent, to trade at 4.1 cents.
