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Mineral Resources makes play for Parker Range

21st August 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Mineral Resources has struck a A$20-million deal to acquire the Parker Range iron-ore project from fellow listed Cazaly Resources, in the Yilgarn region of Western Australia.

The Parker Range project has a current reserve of 31.4-million tonnes targeting an iron-ore fines product grading of 56.4% iron, located some 400 km east of Perth.

Cazaly in June this year struck an agreement with Gold Valley to divest of the Parker Range project for A$13-million plus royalties, but on Wednesday said that the proposal from Mineral Resources was considered to be more favourable to the company.

Mineral Resources now has 21 days in which to conduct a due diligence, with the agreement with Gold Valley to remain in place during this time. In the event that Mineral Resources formalizes the offer, Cazaly will pay a break fee of A$250 000 to Gold Valley.

In addition to the A$20-million cash payment for the Parker Range project, Mineral Resources has also agreed to a royalty of 50c for every tonne of iron-ore extracted and removed from the project, after the first 10-million tonnes.

Edited by Creamer Media Reporter

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