PERTH (miningweekly.com) – Junior Fe Limited has entered into a sale and purchase agreement with LSX-listed Trident Resources for its Evaston royalty interest, over a portion of the wider Koolyanobbing iron-ore mine, in Western Australia.
The sales price of A$7-million in cash will be paid in two installments, with the first A$4-million payable on the completion of the transaction, which is subject to a number of conditions, including Foreign Investment Review Board approval.
“We are pleased to have agreed this transaction with Trident. The royalty has provided useful cash flow in recent quarters but it is not our main undertaking and its quantum is never certain, so monetizing it makes it much easier for us to plan our exploration programme at the company’s key focus areas knowing we have the cash in place,” said Fe Limited chairperson Tony Sage.
“We have a large tenement holding in the Pilbara which is prospective for multiple commodities so we look forward to continuing to actively explore that, including follow-up works to the recent drilling conducted at Hillside.”