Mineral Resources (MinRes) is set to pay $200 million to Red Hill Minerals following the first ore shipment from its Onslow Iron project in Western Australia.
Under a 2021 deal, MinRes and Red Hill set out a joint venture interest agreement that saw Red Hill sell its 40 per cent interest in the Red Hill iron ore joint venture (RHIOJV) to MinRes.
MinRes announced in May 2024 it had set sail on its first iron ore shipment ahead of schedule, triggering the terms of the deal with Red Hill.
This first commercial shipment from Onslow also marks the commencement of the 0.75 pre cent free on-board revenue royalty stream payable to Red Hill.
Red Hill executive chair Joshua Pitt welcomed the payment, which he said will go toward the company’s other mineral rights over the RHIOJV tenements, currently the subject of exploration.
“Our company worked closely within the RHIOJV over many years to advance this project and found in MinRes an excellent team that is close to achieving the rare feat of completing a major project development, the Onslow Iron project, on time and within budget,” Pitt said.
This second payment to the company, followed by the royalty revenue stream generated from our royalty interest in the project should benefit our shareholders while funding an effective gold and base metal exploration effort.”
Onslow is tipped to ramp up to nameplate capacity of 35 million tonnes annually by June 2025.
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