Resource Mining Corp sells iron project

West Perth-based Resource Mining Corporation has sold its majority interest in the Argyle iron ore project for $2.4 million.

The company said it had reached agreement with Kimberley Metals Group over its 75 per cent stake in the project.

Kimberley Metals Group is a private Australian company with Australian and Chinese stakeholders, whose directors include Ian Junk and Darren Hedley, who have significant experience developing and operating mineral projects in Western Australia.

The principal terms of the agreement are:

- Kimberley has paid a $100,000 deposit to Argyle, which is being held on trust until settlement.

- A further $2.3 million will be paid by Kimberley to Argyle on settlement, being the later of (i) 9 January 2009 or (ii) when all matters required for the registration of the transfers of the Argyle Project tenements have been completed.

- A further $1.5 million will be paid by Kimberley to Argyle after the shipping of the first 2 million tonnes of hematite iron ore from the Argyle Project, provided that the average FOB price achieved for such ore is at least A$90 per dry tonne.

Resource Mining has previously announced its intention to focus on its Wowo Gap nickel project in Papua New Guinea and it intends to apply its share of the funds from the sale of the Argyle Project to continue to advance this project.