Rico Resources (ASX: RRI) will be back in action this morning after exiting a trading halt on the news that the company has acquired a strategic iron ore exploration package in the highly productive Pilbara region of Western Australia.
The acquisition has been made from Cliffs Asia Pacific Iron Ore Pty Ltd, for a total consideration of $275,000 - to be paid in three instalments.
The significance of the transaction is that Rico will have an additional 385 square kilometres of ground to complement the current Pre-Feasibility study work and exploration drilling at the wholly owned Wonmunna Project.
The acquisition comprises eight granted Exploration Licences and five Applications for Exploration Licence, all of which are either abutting, adjacent to or surround a number of current mining operations and development projects.
The nearby projects are very significant, and include BHP Billiton's (ASX: BHP) Mt Whaleback Mine, Rio Tinto (ASX: RIO) & Hancock Prospecting’s JV Development at Hope Downs 4, BC Iron’s (ASX: BCI) Nullagine operation and Atlas Iron’s (ASX: AGO) Western Creek resource.
Another plus for Rico is the significant infrastructure in the area due to the existing major mining projects.