Australian diversified miner Cazaly Resources has acquired a further 15% interest in the Mt Caudan tenement area, increasing its stake to 95% after reaching an agreement with Gondwana Resources.
Under the agreement with Gondwana and others, Cazaly will pay A$270,000 and either issue A$842,500 worth ordinary shares or an additional cash sum of A$842,5000 subject to the discretion the board, Cazaly said.
Cazaly managing director Nathan McMahon said that the Mt Caudan tenement area is becoming a key iron ore province.
"We feel Mt Caudan will prove to be an important iron ore project in the Yilgarn region and to have secured a 95% stake is a real coup for Cazaly and its shareholders," McHanon said.
The resource estimate at the Mt Caudan deposit is 23.5mt at 55.4% iron and can economically sustain a 2 to 4 million tonne per annum operation, according to a recent scoping study.
Under the original iron ore farm in agreement, Cazaly acquired 80% interest while Gondwana retained a 20% interest in the iron ore rights and the right to explore and mine all other minerals.
The remaining 5% interest is owned by William Richmond.