Iron Ore Holdings has continued to offload its non-core assets; announcing the sale of its Central Pilbara iron ore tenement packages to a subsidiary of Mineral Resources for $42 million.
IOH announced today it would sell the Phil’s Creek, Lamb Creek and Yandicoogina Creek packages to Process Minerals International.
The transaction involves a $5 million deposit, with the remaining $37 million to be paid in two tranches over 90 business days.
This is the second major transaction announced by IOH over the past three weeks, after it offloaded its Koodaideri South tenements to Rio Tinto for $32 million plus a 2 per cent royalty payment.
Chairman Richard Court said the board was “very satisfied” wit the two high value transactions.
Managing director Alwyn Vorster said the transactions underscored the robust outlook for the iron ore industry.
“IOH is confident that its two larger, more advanced, and strategically better located flagship deposits at Iron Valley and Bungaroo South will both add significantly higher value when commercialised,” Mr Vorster said.
At 12:44PM (WST) IOH’s stock was up 7.7 per cent, to trade at $1.33.
