Junior mining company Mindax has signed a $52 million deal with Hong Kong’s Perpetual Mining in a joint venture for the Mt Forrest Iron Project.
According to Proactive Investors Australia, Perpetual Mining will spend the money on farm-in to push the development of Mt Forrest.
It has agreed to pay Mindax $250,000 per month during the diligence period. This is expected to take two months.
The Perth-based company said yesterday it had signed the deal that would mean Perpetual would attain a 51 percent interest in the direct shipping of ore from its Mount Forrest project in Western Australia’s Yilgarn region, and 49 percent of the magnetite rights.
The Australian reported the deal is happening a year after two Chinese directors sacked Mindax managing director Greg Bromley because they were not happy with a $115 million deal with Japan’s Sumitomo that they said did not value the magnetite at Mount Forrest properly.
There was an attempt to remove directors Andrew Tsang and Benjamin Chow from the board after they attempted to fire Bromley. Chairman of National Australia Bank and Woodside Petroleum Michael Chaney, and Janet Holmes à Court from Osbourne Properties signed requisition notices to remove Tsang and Chow.
This did not succeed and Tsang and Chow remain on the board.
Mindax managing director Steve Ward said yesterday this joint venture with Perpetual was supported by existing shareholders.
Image courtesy: Mindax