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|Iron Moutain Receives First Payment From PMM As Part Of Option Fee|
|= Related to Mt Richardson, Windarling tenements in mid-west Western Australia =|
Australian Iron Mountain Mining Ltd (IRM) announced that it has received an initial payment of $3,000,000 from Portman Iron Ore Ltd (PMM), required for PMM to exercise its option over IRM's Mt Richardson tenement E 29/571 and the Windarling East tenement application E 77/1267.|
Under the option agreement, announced by IRM on August 13, 2008, Portman acquired optional rights to explore for iron ore on the tenements during the option period with IRM retaining a 2% royalty on the FOB price of iron ore products produced after the option is exercised. IRM has previously announced encouraging results from work it has carried out on its Mt Richardson tenement E 29/571 where it has defined several pods of hematite mineralization and identified further potential both on strike and parallel to the currently drill tested areas.
The agreement will provide a total of $10,000,000 subject to agreed milestones, should the option be exercised.
In addition, IRM will receive a once only payment of $0.50 per dry tonne on tonnages in excess of 10,000,000 tonnes of independently confirmed JORC compliant Indicated or Measured Resource defined on the tenements under option. The money received under the option agreement will allow IRM to conduct further exploration at its Blythe and Miaree projects without the need to dilute shareholder equity.
|last modified : Fri 10 Oct, 2008 [11:30]|