The latest deal is part of IOH’s strategy of monetising its central Pilbara tenements, while it focuses on development of its Buckland project in the west Pilbara.
Today’s deal involves an up-front payment of $2.5 million and additional payments of up to $5.25 million if the project reaches development milestones, and a royalty of up to 2.5 per cent on future production.
ASIC records show the directors of Maiden Iron are David Paull, who is managing director of Aspire Mining and Fergus Campbell, who most recently was national manager of Abigroup Mining Services, which was consolidated into parent company LendLease in June.
The tenements being sold have a JORC indicated resource of 15.6 million tonnes at 54.0 per cent iron.
IOH chief executive Alwyn Vorster said “with IOH currently primarily focused on securing funding, approvals and tenure for the development of our Buckland project, the North Marillana tenements are better suited to Maiden Iron’s development approach”.
The transaction follows IOH selling off four of its Pilbara iron ore assets over the past 18 months.