Miracle Iron Holdings is set to become the new owner of the Paulsens East iron ore project.
The project, located in the Pilbara, is currently 100 per cent owned by Strike Resources’ subsidiary Strike Iron Ore Holding (SIOPL).
The two companies have entered into a share and asset sale agreement of 100 per cent of the shares in SIOPL, in consideration of a cash purchase price of $20.5 million.
Completion of the agreement is being targeted for February 2024.
“Strike is satisfied in relation to Miracle’s financial capacity to complete the transactions contemplated under the agreement, after having completed due diligence on Miracle,” Strike said in a recent announcement.
Strike completed the feasibility study on Paulsens East in October 2020, confirming strong project economics for a 1.5 million tonnes per annum (MTPA) production rate over an initial four year life of mine. First ore from the project was produced in 2022.
“Strike will apply part of the sale proceeds to fully discharge the $US7.2 million loan owed to Good Importing International, with the remaining proceeds intended to applied towards the advancement of Strike’s Apurimac iron ore project in Peru (Apurimac) and for working capital purposes,” Strike said.
“A $2 million deposit has been paid by Miracle in accordance with the terms of the agreement.”
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