Mineral Resources (MinRes) subsidiary Polaris Metals has entered a deal for mineral explorer Aurumin’s iron ore rights at one of its Mount Dimer tenements in Western Australia.
The Mount Dimer exploration tenements are located approximately 120km north-east of Southern Cross, near MinRes’ Carina iron ore mine.
“We are pleased to have executed the agreement with MinRes for the iron ore rights at Mount Dimer,” Aurumin managing director Brad Valiukas said.
“This agreement allows Aurumin to unlock further value from Mount Dimer, complementing the sale of the mining tenements to Beacon Minerals, and will allow further reduction of the convertible note.
“We maintain upside from both progress payments and future production and look forward to working with MinRes on the exploration program.”
A cash consideration of $250,000 is payable to Aurumin on the satisfaction of the conditions precedent, which include the granting of exploration licences and regulatory approval, with a progress payment of another $250,000 on granting of first program of works.
MinRes will also reimburse tenement outgoings, with Aurumin conducting MinRes-approved exploration activity for a management fee.
The agreement follows a strong September quarter for MinRes iron ore, with the company announcing an eight per cent production increase to 4.8 million wet metric tonnes (wmt).
MinRes also announced it has achieved all major approvals at its Onslow iron project with first ore-on-ship delivery set for June 2024.
Not only making moves in the iron ore space, MinRes has recently set its sights on lithium with the acquisition of Pantoro’s lithium, nickel, copper and cobalt rights at the Norseman gold project in WA.
MinRes will pay $30 million in cash upfront and a further $30 million when a final investment decision is made on any mining operation related to the critical minerals.
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