Rico acquires Pilbara package

THE BOURSE WHISPERER: Rico Resources has acquired a tenement package prospective for iron ore within the Pilbara region of Western Australia.

The tenements were acquired from Cliffs Asia Pacific Iron Ore.

The acquisition of the Cliffs Pilbara tenements increases Rico’s landholding in the Pilbara provide the company with an additional 385.23 square kilometres of ground it said will complement current pre-feasibility study work and exploration drilling being carried out at the 100 per cent owned Wonmunna project.

The Cliffs Pilbara tenements consist of eight granted Exploration Licences and five Applications for Exploration Licence.

All of these Licences are either abutting, adjacent to or surround a number of current mining operations and development projects.

These projects include BHPB’s Mt Whaleback Mine, Rio Tinto & Hancock Prospecting’s JV Development at Hope Downs 4, BC Iron’s Nullagine operation and Atlas Iron’s Western Creek resource.

All of the tenements are well positioned close to existing infrastructure.

“The acquisition of the Cliffs Pilbara tenements is a significant achievement for Rico,” Rico Resources executive chairman Imants Kins said in the company’s announcement to the Australian Securities Exchange.

“This is a major expansion to Rico’s iron ore portfolio with tenements that are strategically located with respect to Rico’s Wonmunna Project and to other mines or development projects.

“The tenements are mostly located within trucking distance of Wonmunna and we consider the tenements to have the potential to substantially increase the Company’s iron ore inventory.

“The acquisition also provides additional optionality for development planning at the company’s Wonmunna project, where we are aggressively pursuing a pre-feasibility study.

“Rico will continue to work on securing additional tenements in the Pilbara with the aim of further increasing our resource base.”

The total purchase price of the transaction is $275,000 to be settled by way of:
 
$125,000 paid to Cliffs upon signing of sales and purchase agreement;

$75,000 paid to Cliffs 12 months after the first of the tenement titles is transferred to Rico; and

$75,000 paid to Cliffs 24 months after the first of the Applications for the Exploration Licences is granted.