BCI Minerals will divest Iron Valley assets to the MinRes unit

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BCI Minerals has agreed to transfer its iron ore assets at Iron Valley in Western Australia’s Pilbara region to Polaris Metals, part of Mineral Resources (MinRes), in a deal worth up to A$73 million ($48.5 million).

The deal was executed through BCI Minerals’ subsidiary Iron Valley.

It aligns with BCI’s strategy to focus on industrial minerals, particularly salt and potash sulfate, and to simplify operations and increase focus on the Mardie Salt & Potash Project in Washington.

In return, Iron Valley will receive A$26 million upon closing of the deal, scheduled for July 2024, and a further A$12.5 million subject to Polaris commencing mining at the Iron Valley North Pit.

In addition, BCI will secure a final deferred payment of A$34.1 million in July 2025, including settlement of all outstanding amounts under the existing iron ore sales and purchase agreement with MinRes.

Polaris will assume responsibility for the mine’s third-party royalties, rehabilitation obligations and state payment from May 2024.

The deal is awaiting ministerial approval for the transfer of the Iron Valley tenements to Polaris, with completion expected in early July 2024.

If the condition is not met by early September 2024, either party can terminate the agreement.

BCI managing director David Boshoff said: “BCI appreciates the successful partnership with MinRes and welcomes the opportunity to sell Iron Valley’s assets.

“The proposed sale is a strategic decision that will enable BCI to realize a specified value of $60.1 million for these assets, plus an additional $12.5 million, and continue to focus on the safe delivery of the Mardie Project , on time and on budget, delivering value to our shareholders and multi-generational benefits to the community.”

“BCI Minerals to divest Iron Valley assets to MinRes unit” was originally created and published by Mining technologya brand owned by GlobalData.


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