Pluton Resources has signed a term sheet to divest its interests in the mining tenements and certain infrastructure of its Cockatoo Island joint venture located in the Kimberly iron ore hub of northern Western Australia.

The agreement has been signed between a subsidiary of Cliffs Natural Resources and its joint venture partner HWE Cockatoo and Cockatoo Mining.

Pluton said the transaction is expected to occur once the third phase of mining activity is complete at the Cockatoo Island next year.

The transaction is subject to the completion of definitive agreements between all parties and mandatory approvals.