PERTH (miningweekly.com) – ASX-listed Sheffield Resource’s sale of its South Pilbara iron tenements has been declared unconditional, as the sale was not subject to Foreign Investment Review Board approval.
Earlier this month, Sheffield agreed to sell its South Pilbara tenements to fellow-listed Brockman Mining.
Under the terms of the transaction, Brockman would provide A$1-million in cash upfront, as well as a supplementary payment of 10 c/t for all Joint Ore Reserves Committee-compliant resources defined at the tenements.
The miner would further pay a royalty of 1% free-on-board for all iron-ore produced from the tenements. In addition, a price participation royalty of 5% would also be applicable for all revenues over A$120/t for iron-ore sales from the tenement.
Sheffield MD Bruce McQuitty said on Monday that the upfront cash payment would increase the company’s already strong cash position.
“In addition to current cash reserves and proceeds from the sale of the South Pilbara iron tenements, we also expect to receive up to A$3.37-million through the exercise of more than 16.8-million in-the-money options, each with an exercise price of 20c and expiry dates of June 30.”
McQuitty said that the funds would be applied principally to advance the Thunderbird heavy mineral sands and Red Bull nickel projects.