Flinders Diamonds has signed an agreement to swap exploration and mining developments rights with Fortescue Metals Group over some tenements in the Pilbara region.
Under the agreement, Flinders and Prenti Exploration, its joint venture partner in the WA tenements, will receive a royalty payment for any iron ore mined by Fortescue on four of Flinders’ Pilbara leases.
The four licences cover 294 square kilometres scattered generally to the north and west of Wittenoom. These tenements are now regarded as part of the company’s White Knight project.
In return, Flinders has been granted exploration access to eight Fortescue tenements, totalling 1,527 square kilometres in which to expand its search for diamonds.
While Flinders would receive the benefit of any iron ore production by Fortescue, the company is not required to pay a reciprocal royalty on any diamond production it might undertake.
For Fortescue, the agreement involves areas with known iron ore potential that are adjacent to the company’s rail route to Port Hedland for its Chichester Range iron ore projects.
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