FMG terminates exclusive option deal with IOH

THE BOURSE WHISPERER: Fortescue Metals Group (ASX: FMG) and Iron Ore Holdings (ASX: IOH) have reached agreement on the early termination of Fortescue’s exclusive option on Iron Valley and the farm-in right over the Maitland River project.

“The joint decision was primarily based on the current development focus of each company following recent market volatility and agreement that Iron Valley and Nyidinghu will not be developed as an integrated mine in the time frame as contemplated in the original transaction,” Iron Ore Holdings said in ia brief announcement to the Australian Securities Exchange.

IOH will pay $4 million to Fortescue for the early termination of the Iron Valley option.

IOH said the agreement to terminate the deal was an amicable one, which enables the company to consider alternative development options for the Iron Valley and Maitland River projects.