Cazaly Resources (ASX: CAZ) has received $20 million for the sale of its Parker Range Iron Ore Project to mining services provider Mineral Resources Limited.
The sale of the Project includes the tenements (M77/0741, M77/0742 and M77/0764), the mining information, contracts and authorisations for the Project.
Under the finalised sale agreement, Cazaly will also receive a royalty of $0.50/ tonne of iron ore produced from the tenements after the first 10 million tonnes of production.
Cazaly has also revealed that it has terminated a Term Sheet with Gold Valley Iron Pty Ltd.
The Parker Range Project is located 52 kilometres south of Southern Cross, 15 kilometres south-east of Marvel Loch and approximately 400 kilometres east of Perth in the Yilgarn region of south-western Western Australia.
The project has a Proven and Probable Ore Reserve of 31.4Mt targeting an iron ore fines product grading 56.4% Fe (61.9% calcined Fe) and 0.02% P, 6.0% SiO2 and 2.50% Al2O3.