Kerry Stokes’ Iron Ore Holdings says it will focus on developing its iron ore projects in the West Pilbara, after completing the sale of its Central Pilbara tenement packages to a subsidiary of Mineral Resources for $42 million.
In accordance with the agreement , originally announced October 13, MinRes subsidiary Process Minerals International will take ownership of the Phil’s Creek, Lamb Creek and Yandicoogina tenements in the Central Pilbara.
IOH announced today that the cash transaction would go ahead after the Phil’s Creek mining proposal was approved by the Department of Mines and Petroleum late last month.
“the approval of the Phil’s Creek mining proposal was the last component in a process that has unlocked the value of these tenements for both companies and IOH wishes MRL well in the development of the tenements,” IOH managing director Alwyn Vorster said.
“Proceeds from this transaction with MRL will result in IOH’s cash position approaching $120 million, which is more than 40 per cent of our current market capitalisation.
“IOH’s development focus will now shift to the West Pilbara, where our flagship deposit Bungaroo South, containing 240Mt of JORC Resource, is moving into a prefeasibility study stage and where our two magnetite deposits are being further explored.
“We also have a number of interesting new business opportunities on the horizon.”
At 1:00PM WST, IOH stocks were down 2.15 per cent, at $1.58, while MinRes shares were down 2 per cent, at $12.40.