Itochu invests $15m in Western Desert Resource's Roper Iron Ore project

Tuesday, December 23, 2008 by Proactive Investors
Itochu invests $15m in Western Desert Resource's Roper Iron Ore project

Western Desert Resources (ASX:WDR) and ITOCHU subsidiary, IMEA Exploration & Development of Australia Pty Ltd (IEDA)  are pleased to announce the execution of formal agreements between the parties to explore and develop the highly prospective Roper Bar iron ore project in the Northern Territory.

This follows the MOU between WDR and IEDA announced on 29 September 2008.

The executed agreement provides for IDEA to expend up to A$15 million over the next six years to earn up to a maximum 51% equity in the project, in addition to the initial A$2.0 acquisition.
 
“We are delighted that Itochu has confirmed its intention to participate in the Roper Bar project,” Chairman of Western Desert, Mr Mick Billing, said today.  “We look forward to participating with Itochu in exploring and developing this exciting project.”

IDEA and WDR have executed detailed farm-in, and joint venture agreements along with various subsidiary documents.  Tenements involved are exploration licences EL26759, EL25672, EL24307, EL24944, EL24665, and ELA26992.

Documents for the transfer of a 15% interest in the tenements subject to the agreement have been lodged with the NT Department of Regional Development, Primary Industry, Fisheries and Resources, with IDEA to pay the sum of A$2.0 million to WDR upon lodgement.

The Roper Bar project is only 30 kilometres west of the Gulf of Carpentaria and just 240 kilometres east of the Alice Springs to Darwin rail corridor.

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