Perth based aspiring miner Ferrowest has purchased a 60 per cent interest in the Yalyirimbi iron ore project from Ngalia Resources.
The company will now take up the proposed joint venture with Arafura Resources who have a 40 per cent interest in the project.
According to Ferrowest the Yalyirimbi iron ore project has the potential to be “a relatively quick and low cost start-up operation”.
In the announcement today Ferrowest have stated their first order of business will be, “to commence a diamond drill programme with the aim of upgrading the projects Inferred Resource to an Indicated and Measured status”.
Ferrowest said it will also open negotiations on rail and port options and commence the necessary environmental and native title approvals processes.
As part of the purchase Ferrowest will issue Ngalia 21.5 million shares and pay them $500,000, with the potential for more shares being issued following further iron ore discoveries.
A further $2 million will be paid to Ngalia prior to mine construction and they will receive a royalty from Ferrowest’s share of the project at a rate of $1.00 per tonne of product loaded for export.
Ferrowest’s share value is currently $0.039.
