THE BOURSE WHISPERER: BCI Minerals (ASX: BCI) commenced a formal divestment process for the company’s iron ore asset portfolio, which includes Iron Valley, Kumina, Bungaroo South, Cape Preston East port rights and several other iron ore exploration tenements.
BCI Minerals described its iron ore assets as being one of the largest Pilbara hematite resource bases held outside the major Pilbara producers.
The company explained that following completion of a maiden JORC Mineral Resource estimate at the Kumina tenements in June 2018, it was approached by multiple parties expressing strong interest in acquiring Kumina and the other iron ore assets.
As a result, the BCI Minerals Board has resolved to undertake a formal process to explore the potential divestment of the entire iron ore asset portfolio, a decision it declared to be aligned with a stated intent of developing a salt and potash business as the primary focus in the near term.
BCI has appointed PCF Capital as corporate advisor and Gilbert + Tobin as legal advisor to support in the divestment process.
“Funds realised from the iron ore divestment process will enable BCI to rapidly progress the Mardie definitive feasibility study and maintain 100 per cdent ownership through to a target final investment decision date in late 2019,” BCI Minerals said in its ASX announcement.
“BCI will also be well placed to maximise its project interest through the Mardie development stage.”