DiscovEx Resources (ASX: DCX) has secured option agreements with major Australian miner Rio Tinto (ASX:RIO) for the sale of iron ore rights at its Sylvania Project near Newman, Western Australia.
The two binding agreements provide Rio with the right to purchase 100% of iron ore rights across four of the project’s tenements, with total potential consideration of up to $9.3 million including extension fees, exercise payments and royalties.
The agreements will also allow for Rio to undertake exploration activities along with investigating development opportunities.
Speaking on the deal, DCX Managing Director Toby Wellman said: “Attracting a tier one global miner to explore the iron ore potential at Sylvania speaks volumes about the quality of the tenement package DiscovEx has been able to accumulate over the past 2 years.
“Attracting a tier one global miner to explore the iron ore potential at Sylvania speaks volumes about the quality of the tenement package”
Rio has the infrastructure network and industry knowledge to maximise the value of these assets. Not only is this an opportunity for DCX to monetise the iron ore assets held within the project, but we also see the advantages of data sharing with Rio to progress our main focus, that being the discovery of gold and base metals resources.”
Map of DCX Sylvania tenements with nearby Rio Tinto infrastructureThe first agreement relates to the existing Spearhole detrital iron ore deposit, while the second covers three tenements that are host to a series of outcropping banded iron-ore ridges and potential buried detrital iron deposits.
DiscovEx notes that it will retain rights to all other minerals across the project.
Images: DiscovEx Resources Limited
