QX Resources farming out 75% stake in Western Shaw iron ore rights
QX Resources is farming out 75% of the iron ore rights of its Western Shaw project in WA’s Pilbara region.
QX Resources farming out 75% of the iron ore rights of its Western Shaw project
Buyers have committed to spending $1m on exploration within 12 months to earn interest
Western Shaw has 11km strike of banded iron formation and rock chips of up to 58.5% iron
Special Report: QX Resources has executed a binding term sheet to farm-out a 75% stake in the iron ore rights of its Western Shaw project in WA’s Pilbara region.
Under the agreement, the purchasers (Nightrise Nominees and Kalkam) will spend at least $1m on exploration within 12 months of signing the term sheet including at least $300,000 within the first six months.
The buyers will free-carry QX Resources (ASX:QXR) through to a decision to mine.
QXR will also be granted a 70c per wet metric tonne royalty on the first 20 million WMT produced from the iron ore rights following which the royalty drops to 5c per WMT.
“The farm-out of a 75% interest in the company’s iron ore rights at Western Shaw is a great outcome for shareholders,” executive chairman Maurice Feilich said.
“The parties have significant experience in the development and operation of iron ore projects and managing drilling campaigns. We believe they have the right expertise to unlock the iron ore potential of Western Shaw.”
Western Shaw project
The 96km2 Western Shaw project is 220km southeast of Port Hedland with access via the Great Northern Highway.
While its main draw to QXR was its lithium prospectivity, Western Shaw is also within a proven iron ore province with significant historical exploration work undertaken.
The project contains an 11km strike of banded iron formation and the company’s rock chip sampling over 4km of this formation returned iron ore grades up to 58.5%.
Adding interest, the Fortescue Metals and Roy Hill railway infrastructure is less than 10km southwest of the project while the BHP railway infrastructure is 25km southwest of the tenement.
This article was developed in collaboration with QX Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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