Australia’s Iron Ore Holdings sells Koodaideri South tenement to Rio Tinto subsidiary

Australia-based company Iron Ore Holdings Limited (IOH) announced that it has sold its Koodaideri South tenement in the Pilbara region of Western Australia, to Hamersley Iron Pty Ltd, a wholly owned subsidiary of Rio Tinto in consideration of $32 million cash plus a 2 percent FOB royalty on ore mined from the tenements.
 
After spending 12 weeks considering the options including self-development, joint venture structures or divestment for Central Satellite tenements, IOH chose the Rio Tinto offer among others, deciding that it provides the best strategic value for IOH in terms of both the cash consideration and the future exposure to a production royalty.
 
IOH also stated that they are continuing the negotiations with other interested parties regarding commercialization of the remaining Central Satellite tenements.