Radar pulls the plug on Mt Ruby participation
PERTH (miningweekly.com) – ASX-listed Radar Iron has withdrawn from the Mt Ruby project, in Queensland, after failing to renegotiate the terms of the existing earn-in agreement.
During February, Radar announced that it had acquired a 51% interest in the project, which had an exploration target of between 8-million and 27-million tonnes, grading between 57% and 68% iron.
Under the terms of the transaction, Radar was expected to make a cash payment of A$5-million, and spend a further A$3-million on project development. The company would also issue ordinary shares to the value of A$1-million upon the announcement of a Joint Ore Reserves Committee-compliant resource with a minimum grade of 60%, and the start of mining.
Radar said on Tuesday that drilling results have indicated that while high-grade zones were present, the skarn mineralisation had a patchy grade distribution, and a significant tonnage of direct shipping mineralisation was not present.
The company noted that upgrading to a direct shipping ore grade was possible, but the capital cost might not be justified, given the likely tonnage of magnetite ore.
Radar and the project vendor, Developed Iron Ore, were unable to renegotiate the existing agreement to a mutually acceptable outcome, and Radar had decided not to proceed with its investment in the Mt Ruby project.
The company told shareholders that it was assessing other projects both within Australia and internationally, with a view to acquisition.
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