- Mineral exploration company, Fe Limited (FEL) has successfully completed the sale of its Evanston iron ore royalty
- The company’s bank account has received $3.46 million, the first instalment of the sale price
- The second instalment of $3 million is payable to the company in 12 months’ time
- This sale is set to assist with funding future exploration programs and projects
- Fe is now gearing up to commence ground survey work at its Hillside project in Western Australia’s Pilbara region
- Fe Limited is trading flat at 1.5 cents each
Mineral exploration company, Fe Limited (FEL) has successfully completed the sale of its Evanston iron ore royalty.
The company has already received the sale’s first instalment of $3.46 million into its bank account. This represents the first $4 million instalment payable under the contract, minus the March quarter royalty which FEL previously received.
A second instalment of $3 million is payable in 12 months’ time, and is secured over the royalty.
Fe Limited’s Chairman, Tony Sage, welcomed the iron ore royalty sale, which will help fund future programs and projects.
“The completion of this sale is an excellent result for FEL, locking in an attractive valuation approximately equivalent to the company’s current market capitalisation, for a non-core asset.
“We now have $5.2 million in the bank, with a further $3 million to come next year.
“That gives us certainty over funding our upcoming exploration programs at our prospective Hillside project, and an ability to fund other value accretive acquisitions should they be identified,” he said.
As Tony mentioned, FEL is now turning its attention to its Hillside project, located in the Pilbara region of Western Australia. The company is now finalising plans to conduct a Fixed Loop Electromagnetic (FLEM) ground survey at the project.
The survey ground work at Hillside will occur in a section of a previously identified gossan line. It will also include a series of individual FLEM surveys on previously identified, high-priority SkyTEM electromagnetic targets.
FEL hopes that the surveys will help define follow-up copper drill targets, and accurately indicate any massive sulphide mineralisation. This may assist in targeting prior to future drilling campaigns for later this year.
Fe Limited is trading flat at 1.5 cents each at market close.