Under a heads of agreement, FEL will pay A$1.5 million in cash and shares with a further A$1.5 million in cash and shares payable on achieving a JORC indicated resource milestone.
“Potential to form part of the continuing success story”
“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.
“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.”
FEL, which will cover certain historical and future costs, will operate the joint venture with vendor Gold Valley Iron and Maganese Pty Ltd, which owns the iron ore rights over the Yarram area.
This represents a portion of mining licence MLN 1163 and two exploration licences, ELR 125 and ELR 146 with the mining licence on freehold land.
Yarram is just over 100 kilometres by road from Darwin, Australia’s closest port to Asian markets, and is adjacent to the Browns Polymetallic project, which is presently on care and maintenance.
Published at Fri, 21 Aug 2020 05:47:00 +0000-Macarthur Minerals hails JV partner Fe Limited’s acquisition of 50% stake in Yarram Iron Ore Project