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Venus Metals sells remaining 50% interest in Yalgoo Iron Ore Project

FIJV has advised the Mid-West Development Commission of its plan to develop magnetite open cut mines at the Yalgoo project near Geraldton.
Signing ceremony
Venus Metals managing director Matthew Hogan with FIJV chairman Mohammad Vahid Sheikhzadeh Najjar

Venus Metals Corporation Limited (ASX:VMC) has signed a deal with private mining investment company FIJV Pty Ltd (FIJV) for the sale of its remaining 50% interest in the Yalgoo Iron Ore Project in WA’s Mid-West.

The $2.5 million sale puts Venus Metals in a strong position to pursue its existing gold, vanadium and other base-metal interests as well as having the capacity to generate new wealth opportunities for shareholders.

Location of the Yalgoo Iron Ore Project.

Yalgoo Iron Ore Pty Ltd, a wholly-owned subsidiary of Venus Metals, holds a 0.625% free-on-board (FOB) royalty over all iron ore magnetite concentrate from the mining tenements sold.

Since iron ore prices retreated in 2012 the Yalgoo project has been a stranded asset for Venus Metals and requires major capital to develop it – far beyond the scope of Vthe company.

Successful signing of binding term sheet

With a renewed interest in magnetite ores, the company identified FIJV as a likely buyer for its 50% interest in the adjacent Bilberatha Hill magnetite projects, leading to a successful signing of a binding term sheet with FIJV.

The Yalgoo project is 180 kilometres from the port of Geraldton and has a total JORC 2012 mineral resource of 698.2 million tonnes at 29.3% iron.

Funds from the sale will be retained by Venus to focus on new wealth generating opportunities including:

  • Further drilling and mine planning at the Bell Chambers Gold Project;
  • Further drilling at the 45% owned Currans Find Gold Project;
  • Metallurgical work on the 90% owned Youanmi oxide vanadium project;
  • Further mapping, sampling and geophysical work at the Doolgunna Base Metals Project;
  • Further work on the Youanmi Zinc Project; and
  • Possible work in the highly prospective Fraser Range where Venus holds two tenement applications.

Venus Metals has declared an unfranked dividend by way of an in-specie distribution of one ordinary share in Yalgoo Iron Ore Pty Ltd (to be converted into a public company) for every fully paid ordinary share in Venus Metals held on the record date of June 20, 2019.

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