Australian iron ore mining company GWR Group has announced that it has received a non-refundable $3 million deposit pursuant to the legally binding agreement for the sale of its remaining interest in the Wiluna West iron ore project in Western Australia to iron ore miner Gold Valley West Wiluna. The transaction is worth A$30 million in cash and a A$2/dry mt royalty in the project, representing potential additional revenue that will further strengthen the cash position of GWR over life-of-mine operations.
“The decision to divest the company’s iron ore assets was difficult to make. However, after much deliberation the board decided it was in the best interests of GWR shareholders to relinquish control of the Wiluna West iron ore assets,” Gary Lyons, GWR’s chairman, said.
The Wiluna West Iron Ore Project is estimated to hold approximately 130 million mt of iron ore reserves.