BCI Minerals will sell its Western Australian Iron Valley iron ore assets to Polaris Metals, a Mineral Resources (MinRes) subsidiary.
The transaction will take place via a binding agreement and will see BCI receive $26 million once the sale is complete, which is expected to be in July.
BCI will also receive another $12.5 million subject to Polaris commencing mining at the Iron Valley north pit.
The existing iron ore sale and purchase agreement BCI shares with MinRes will terminate once this transaction has been completed. As a result, BCI will receive a final payment of $34.1 million in July 2025.
“BCI appreciates the successful partnership it has had with MinRes and welcomes the opportunity to sell the Iron Valley assets,” BCI managing director David Boshoff said.
Boshoff said the transaction allows BCI to enhance its focus on salt and sulphate of potash (SOP), specifically on the Mardie salt and potash project on the Pilbara coast of WA.
BCI describes Mardie as a “future Tier 1 project” that has been designed to produce 5.35 million tonnes of high-purity salt per annum, as well as 140,000 tonnes of SOP per annum.
“The proposed sale is a strategic decision that enables BCI to realise $60.1 million certain value for these assets, plus a further contingent $12.5 million, and continue to focus on safely delivering the Mardie project on schedule and on budget, providing value to our shareholders and multi-generational benefits to the community,” Boshoff said.
“We thank MinRes for its long and rewarding partnership with BCI and wish MinRes well for its future ownership of Iron Valley.”
Polaris assumed responsibility for Iron Valley’s payment of state and third-party royalties and rehabilitation obligations on May 1.
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