IOH banks final payment from Mineral Resources

THE BOURSE WHISPERER: Iron Ore Holdings has received the final $21 million payment in cleared funds for the sale of the Lamb Creek and Yandicoogina Creek satellite tenements to Mineral Resources.

The sale of these tenements was part of a transaction with Process Minerals International (PMI), a wholly owned subsidiary of Mineral Resources.

The transaction included the Phil’s Creek tenement in the Central Pilbara region of Western Australia.

PMI paid a $5 million deposit in October last year leaving the remaining $37 million to be paid in two stages when the Phil’s Creek Mining Proposal was approved by the Department of Mines and Petroleum.

That approval was given, resulting in IOH receiving a $16 million payment from PMI for the transfer of the Phil’s Creek tenement in March 2012.

The remaining payment of $21 million for the Lamb Creek and Yandicoogina Creek tenements was then required within 30 days.

IOH has been busy of late having now completed three transactions in the past seven months.

In other transactions the company divested the Koodaideri South tenement to Rio Tinto and acquired the Mardie coastal tenement in the West Pilbara.

“The completion of this transaction reinforces IOH’s transactional abilities and takes the IOH cash balance above the $120 million mark, which is more than 40 per cent of our current market capitalisation,” Iron Ore Holdings managing director Alwyn Vorster said in the company’s announcement to the Australian Securities Exchange.

“IOH will now focus its development activities on the Western Pilbara, with a pre-feasibility study of the Bungaroo South project and the ongoing exploration programs at Maitland River, Western Satellite deposits and Mt Dempster which will deliver resource announcements during CY2012.”