Radar shares soar on DSO buy
PERTH (miningweekly.com) - The share prices of ASX-listed Radar Iron jumped by more than half on Friday on the company’s announcement that it had acquired a 51% interest in the Mount Ruby magnetite deposit, in Queensland.
Mining of high-grade direct shipping ore (DSO) magnetite was planned for the fourth quarter of this year, with approvals either in place or pending, Radar told shareholders.
The project had an exploration target of between 8-million and 27-million tons, grading between 57% and 68% iron.
“This project offers the potential for a near-term and substantial cash flow for Radar to benefit our shareholders and provide funds to progress our Central Yilgarn project,” said Radar MD Jonathan Lea.
The acquisition of the 51% interest was contingent on Radar completing a due diligence, including initial confirmatory drilling on the project, before the end of April.
Following a satisfactory due diligence, Radar would make a cash payment and spend funds on project development to secure its equity interest in the project. The junior would also issue equity to seller Developed Iron Ore (DIO) on delineating certain resources and upon the joint venture's start of mining.
The cash payment would consist of A$5-million, with Radar committing to spend a further A$3-million on the development of the project. 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.
The due diligence process had now started.
Radar shares were trading at a high of 20.5c a share on Friday, up from the low of 16.5c a share.
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