BCI Minerals has agreed to offload its Iron Valley iron-ore assets in the Pilbara region of Western Australia to Polaris Metals, a unit of Mineral Resources (MinRes), in a deal valued up to A$73m ($48.5m).
The deal was executed through BCI Minerals’ subsidiary, Iron Valley.
It aligns with BCI’s strategy to focus on industrial minerals, particularly salt and sulphate of potash, as well as simplify operations and enhance focus on the Mardie Salt & Potash Project in WA.
As consideration, Iron Valley will receive A$26m at deal closing, which is scheduled for July 2024, and another A$12.5m contingent on the start of mining at the Iron Valley North Pit by Polaris.
Additionally, BCI will secure a final deferred payment of A$34.1m in July 2025, which includes settlement of all outstanding amounts under the existing iron ore sale and purchase agreement with MinRes.
Polaris will take on responsibility for the mine’s third-party royalties and rehabilitation obligations and payment of state from May 2024.
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The deal awaits ministerial consent for the transfer of the Iron Valley tenements to Polaris, with completion expected in early July 2024.
If the condition is not satisfied by early September 2024, either party may scrap the agreement.
BCI managing director David Boshoff said: “BCI appreciates the successful partnership it has had with MinRes and welcomes the opportunity to sell the Iron Valley assets.
“The proposed sale is a strategic decision that enables BCI to realise $60.1m certain value for these assets, plus a further contingent $12.5m, 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.”
