PERTH (miningweekly.com) – ASX-listed BC Iron has acquired a number of exploration tenements in the Pilbara from Mineralogy for A$9-million.
BC Iron said on Friday that the tenements are within trucking distance of the company’s proposed Cape Preston Port, and had been subjected to minimal exploration work.
The tenements had the potential to host iron-ore deposits, which BC Iron said could increase the throughput of the company’s Buckland project, and which could enhance the value and marketability of the proposed Buckland blend.
Under the terms of the agreement, BC Iron would pay an initial A$2-million on the execution of an acquisition agreement, and a further A$7-million on the completion of the acquisition.
An iron-ore royalty of 2% of free-on-board revenue will also be payable for the first 100-million tonnes of iron-ore mined, increasing to 3.5% on any iron-ore in excess of 100-million tonnes. Mineralogy will also receive a 3.5% royalty on the value of any other minerals sold from the tenements.
“This transaction is the result of significant negotiations with Mineralogy over many months. Given that the tenements have been largely unexplored or underexplored for many decades, it presents a relatively unique opportunity for BC Iron to implement an extensive exploration programme for iron-ore and other minerals in the Pilbara,” said MD Alwyn Vorster.
On the completion of the acquisition, BC Iron will conduct an initial exploration programme on the tenements to assess their potential to contribute to the Buckland project, before fast-tracking further exploration and feasibility work, as required.