09/10/2008 - 11:02

Royal sells Pilbara iron project for $3m

09/10/2008 - 11:02

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West Perth-based Royal Resources Ltd will sell its Pilbara iron ore project to its neighbour Giralia Resources Ltd for $3.2 million in cash and shares.

West Perth-based Royal Resources Ltd will sell its Pilbara iron ore project to its neighbour Giralia Resources Ltd for $3.2 million in cash and shares.

Royal said following a review, it has decided to sell its Prairie Downs project to boost its cash position to further develop the Shine iron ore deposit in the Mid West, which it holds in conjunction with Gindalbie Metals Ltd.

Under the deal, West Perth-based Giralia will receive an upfront cash payment of $2 million and 2 million fully paid shares escrowed for up to 12 months.

Shares in Royal were steady at 9 cents while shares in Giralia were down 2c to 58c at 14:02 AEST.

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