Australia-based iron ore exploration company Murchison Metals (Murchison) has announced that it has sold its Rocklea iron ore project in the Pilbara region of Western Australia to Australia-based Dragon Energy Limited for A$3.2 million in cash.
The sale of the Rocklea project is conditional on obtaining consent to the assignment of a standard heritage agreement. Completion is required to take place five business days after the condition is satisfied.
The project had a book value of approximately A$12 million as of June 30, 2012. Murchison will record an impairment write-down for the project as of June 30, 2012 of approximately A$8.8 million.
This acquisition is expected to double the iron ore resources of Dragon Energy.