Fe Limited, a Joint Venture Partner of Macarthur Minerals Limited, has reported that it has signed a binding Heads of Agreement to purchase a 50% interest in the Yarram Iron Ore Project, which is located in the Northern Territory.
The value of the consideration is A$1.5m in cash and shares, where an additional A$1.5m in cash and shares are payable upon realizing a Joint Ore Reserves Committee (JORC)-specified resource milestone.
Fe Limited is liable to pay for some historical and future costs. Fe Limited will run the Joint Venture and has a casting vote on the majority of key problems, where it cannot unreasonably withhold approval of other matters.
Mentioned below are the outstanding historical drill intercepts:
- 35 m @ 62.9% Fe, 4.3% SiO2, 1.6% Al2O3, and 0.045% P from a depth of 23 m in hole RJRC0106
- 65 m @ 66.4% Fe, 2.0% SiO2, 1.5% Al2O3, and 0.022% P from a depth of 13 m in hole RJRC069 (hole completed in 65.9% Fe)
- 108 m @ 65.6% Fe, 2.3% SiO2, 1.8% Al2O3, and 0.037% P from a depth of 18 m in hole RJRC0119
Yarram is situated just above 100 km by road from Darwin and is located close to the Browns Polymetallic project, which is on care and maintenance at present.
Fe Limited has been acquiring its interest from Gold Valley Iron and Manganese Pty Ltd, which possesses the rights to iron ore across the Yarram area. This area represents a portion of a mining license (named MLN 1163) and two exploration licenses (named ELR 125 and ELR 146).
The Mining license is situated on Freehold land. The underlying tenure is possessed by an independent party, Northern Territory Resources Pty Ltd, which is the owner of the Browns Polymetallic project.
We are excited by the news that Fe Limited is acquiring a 50% interest in the Yarram Iron Ore Project. With the current robust iron ore market, FEL’s play for a mature iron ore asset like Yarram, which is located close to existing port and mining infrastructure, is a smart move.
Cameron McCall, President and Executive Chairman, Macarthur Minerals
McCall continued, “As Macarthur currently holds 26,666,667 Ordinary Shares in FEL (and pursuant to its Joint Venture Agreement with FEL, can earn a further $500,000 in cash or shares in FEL under the earn-in arrangements), the successful delivery of the Yarram Project by FEL and its joint venture partner, Gold Valley Iron and Manganese Pty Ltd, has the potential to form part of the continuing success story for Macarthur and its shareholders.”
“We wish FEL and its management team well in the pursuit of its objective to bring Yarram into production,” added McCall.