Forge Resources has picked up $8.5 million by selling a part of its stake in the Balla Balla magnetite iron ore project in the Pilbara to its joint venture partner, New Zealand’s Todd Corporation.
Forge said today it would sell 7 per cent of its take in the Balla Balla project to Todd Corp, for $7 million.
Todd Corp will also provide Forge with $1.5 million in finance to go towards working capital and exploration expenditure.
Once the transaction is complete, Forge Resources will hold 68 per cent of Balla Balla, and Todd Corp 32 per cent.
Forge managing director Matthew James said the funding package would be sufficient to guide the company to a final investment decision on Balla Balla.
“Forge has developed a strong relationship with Todd over the past 12 months as the two groups have continued the development of Balla Balla,” Dr James said.
“The provision of this funding package re-iterates and supports both Forge’s and Todd’s view of the quality nature and commercial upside that is represented by the Balla Balla project.”
Forge Resources shares gained 14 per cent on the ASX today, finishing trade at 20 cents.
The Forge deal follows Todd Corp’s move to take a 20 per cent stake in Perth-based Wolf Minerals last December.
