Sipa Resources has agreed to sell its exploration licence, E20/546, to Sinosteel Midwest Corporation (SMC) in exchange for $450,000 as well as a 0.2% ‘free on board’ royalty for any iron ore output from the tenement.

The proceeds from the sale will be utilised for working capital purposes.

The non-core licence is situated in the south-west end of the Weld Range in Western Australia’s mid-west region.

The agreement will be concluded on 31 December 2009.