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Australian miner Golden State Resources is selling its interests in the Johnson Range iron ore project in the Yilgarn region of Western Australia to a local subsidiary of US miner Cliffs Natural Resources.
 
In addition to $3 million, Golden State will receive a gross royalty of 2 percent on iron ore sales from the tenements as well as a 2 percent gross royalty on the sale of all other minerals transported from the project.
 
The $3 million non-refundable royalty prepayment will be paid on the execution of a formal agreement on or before April 30, 2010.
 
The sale will entitle Cliffs, an existing producer in the region, to contribute to the development of the Johnson Range iron ore project and is seen as an ideal way to accelerate the project development.