Iron Mining Group’s (IMG) subsidiary Heirro IMG Mexico has signed an exclusive iron ore development agreement with Minera BarraNava to explore mineral concessions in Mexico.

According to the agreement, Heirro IMG Mexico will pay Minera BarraNava a royalty of $10 per metric ton of iron ore sold through the agreement, as well as a 35% profit share of all iron ore mining profits generated.

The mineral concessions cover about 48km² with strong iron ore interest, identified by Heirro IMG Mexico.

The firm has started a ground magnetometry study to identify the potential mineral resource, and will later conduct a core-drilling programme to confirm and quantify the ore bodies identified.

The firm intends to complete the necessary applications for exploration and obtain exploitation permits from the Mexican environmental authority.