Iron Ore Holdings (ASX:IOH) has sold its North Marillana tenements in the Central Pilbara, Western Australia to Maiden Iron for up to $7.75 million in cash and a royalty on the iron ore produced.
The North Marillana satellite prospects are made up of four Mining Leases known as the Extension Tenements and two Exploration Licences, known as the Breakaway tenements.
The Extension tenements contain a JORC Indicated Resource of 15.6 million tonnes at 54.0% iron with Native Title Agreements secured.
Maiden Iron will pay $2.5 million to acquire the Extension tenements and a 12 month option over the Breakaway tenements. Upon production at Extension and the Breakaway option being exercised, an additional $5.25 million will be paid to IOH.
A royalty of up to 2.5% of the free-on-board iron ore price will be payable to IOH for iron ore produced.
Maiden Iron will meet all expenditure requirements during the Breakaway option period; if the option expires the tenements will revert unencumbered to IOH.
This is the fifth transaction since IOH commenced a formal commercialisation process on its Central Pilbara tenements in late 2011.
Previous transactions included sale of Koodaideri South to Rio Tinto (ASX:RIO) for $32 million plus a 2% FOB royalty; sale of Phil’s Creek and Lamb Creek to Mineral Resources (ASX:MIN) for $42 million; and the Iron Valley option deal with Fortescue (ASX:FMG) that delivered $20 million.
The Maiden Iron deal completes the monetisation of IOH's Central Pilbara iron assets, allowing sole focus on securing funding, approvals and tenure for the development of their Buckland Project, incorporating the 8 million tonne per annum Bungaroo South mine.
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