Venus Metals Corporation Limited (ASX:VMC) has signed a deal with private mining investment company FIJV Pty Ltd (FIJV) for the sale of its remaining 50% interest in the Yalgoo Iron Ore Project in WA’s Mid-West.
The $2.5 million sale puts Venus Metals in a strong position to pursue its existing gold, vanadium and other base-metal interests as well as having the capacity to generate new wealth opportunities for shareholders.
Location of the Yalgoo Iron Ore Project.
Yalgoo Iron Ore Pty Ltd, a wholly-owned subsidiary of Venus Metals, holds a 0.625% free-on-board (FOB) royalty over all iron ore magnetite concentrate from the mining tenements sold.
Since iron ore prices retreated in 2012 the Yalgoo project has been a stranded asset for Venus Metals and requires major capital to develop it – far beyond the scope of Vthe company.
Successful signing of binding term sheet
With a renewed interest in magnetite ores, the company identified FIJV as a likely buyer for its 50% interest in the adjacent Bilberatha Hill magnetite projects, leading to a successful signing of a binding term sheet with FIJV.
The Yalgoo project is 180 kilometres from the port of Geraldton and has a total JORC 2012 mineral resource of 698.2 million tonnes at 29.3% iron.
Funds from the sale will be retained by Venus to focus on new wealth generating opportunities including:
- Further drilling and mine planning at the Bell Chambers Gold Project;
- Further drilling at the 45% owned Currans Find Gold Project;
- Metallurgical work on the 90% owned Youanmi oxide vanadium project;
- Further mapping, sampling and geophysical work at the Doolgunna Base Metals Project;
- Further work on the Youanmi Zinc Project; and
- Possible work in the highly prospective Fraser Range where Venus holds two tenement applications.
Venus Metals has declared an unfranked dividend by way of an in-specie distribution of one ordinary share in Yalgoo Iron Ore Pty Ltd (to be converted into a public company) for every fully paid ordinary share in Venus Metals held on the record date of June 20, 2019.