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Cazaly Resources Agree To Sell Parker Range Iron Ore Project

Mining News - Published on Mon, 17 Jun 2019

Image Source: ABC
Cazaly Resources Limited announced it has agreed commercial terms for the sale of its Parker Range Iron Ore Project to private Australian based diversified group, Gold Valley Iron Pty Ltd, by way of the sale of the 100% owned subsidiary of Cazaly, Cazaly Iron Pty Ltd which holds the tenements that comprise the Parker Range Iron Ore Project. The Agreement allows for an initial three-month due diligence and exclusivity period following the payment of an exclusivity fee and a strategic investment in shares of Cazaly as detailed below. This period may be extended for a further three months by mutual agreement. The sale follows a comprehensive process over an extended period whereby the Company dealt with several parties interested in the Project. The arrangement with Gold Valley was considered the best option to advance the Parker Range Project towards production whilst retaining a potential royalty stream. The directors of the Company believe the deal is a great result for Cazaly, unlocking immediate value for the Company's shareholders. Gold Valley's strategic investment to subscribe for 10 million ordinary shares in the Company provides further confidence in the alliance.

Mr Nathan McMahon, Cazaly's Joint Managing Director said that “This agreement realises some immediate value from the Parker Range Project in an iron ore market that has recently shown signs of recovery. Following completion of the proposed transaction, the Company will receive a significant cash injection and provide shareholders further upside by way of additional payments and a royalty from production. We are highly confident that the project will grow further and are confident Gold Valley has the requisite technical, managerial and importantly, marketing skills to develop the asset.”

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Posted By : Sanju Moirangthem on Mon, 17 Jun 2019
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