IOH in halt over Rio Tinto talks

Shares in Iron Ore Holdings have been placed in a trading halt as it continues talks with Rio Tinto over the possible sale of it Iron Valley deposit in the Pilbara.

Shares in the Kerry Stokes majority-owned explorer last traded at $1.55.

Last month, both companies entered into an exclusive agreement which gave Rio Tinto the right to examine the Iron Valley deposit, located 10km from Rio's Yandicoogina operation.

The agreement followed a mine-gate sale deal for Iron Ore Holdings to sell ore from its Phil's Creek deposit to Rio Tinto.

Under the deal, up to 1.5 million tonnes will be delivered each year to Rio Tinto, which will then transport it to the coast for shipment.