Posted on 25 Dec 2023
Australian miner GWR Group is selling its remaining interest in the Wiluna West iron ore project in Western Australia to Gold Valley West Wiluna (GW). The consideration comprises AUD 30 million ($20.39m) and a AUD 2/dry metric tonne royalty, Kallanish notes.
GWR says in a statement that the firm has entered into a legally binding agreement for the sale with GV. “The compelling offer submitted by GV represents a significant opportunity for the company to further bolster its cash position. This will provide the catalyst to develop our existing assets and pursue other commercial ventures," GWR chairman Gary Lyons says.
The company plans to use the sale proceeds from the transaction for development of the company’s current projects, project generation activities and working capital.
In a separate statement, GWR confirms receipt of a non-refundable AUD 3 million deposit from the sale, which sees the firm trading with around AUD 20.5 million of cash and equivalents.
According to the firm, the additional AUD 2/dmt royalty represents potential additional revenue that will further strengthen its cash position over life of mine operations. GWR also intends to explore the significant potential upfront value of its iron ore royalty with Royalty Streaming Funds.
GWR is actively assessing new opportunities in the resources sector and is also considering capital management initiatives such as a capital return to shareholders.
Source:Kallanish
