Dynasty Metals Australia Limited: Update on Farm-out Joint Venture
03.04.2012 | ABN Newswire
Perth - Dynasty Metals Australia Limited (ASX:DMA) entered into a joint venture agreement with China Coal Geology Engineering Corporation ('CCGEC') in May 2011 in relation to further exploration activities at non-core base metal tenements held by Dynasty.Those tenements (as detailed in Dynasty's 17 May 2011 announcement) were transferred to a joint venture company, Goldstone Resources Pty Ltd ('Goldstone'), and CCGEC has now contributed $2 million to Goldstone, in exchange for a 60% interest in that company (held by CCGEC and its associate). Dynasty retains a 40% interest.
This transaction enables Dynasty to reduce costs on non-core tenements, allows for the required exploration activities to continue, and preserves Dynasty's ability to participate in the project upside.
Under the terms of the joint venture agreement, CCGEC may exercise an option, subject to FIRB approval, to increase its interest in Goldstone to 75% for a total share subscription price of $750,000.
About Dynasty Metals Australia Limited:
Dynasty Metals Australia Ltd (ASX:DMA) is an emerging Australian iron ore exploration company focused on developing its 100%-owned tenements at Prairie Downs in Western Australia's Pilbara region.
In March 2010, Dynasty announced initial JORC-Compliant Inferred Resources of 453 million tonnes of Detrital Channel Iron and 23.3 million tonnes of Marra Mamba Iron Formation.
The 2010 exploration programs are underway and are aimed at further testing and significantly expanding the current resources, as well drilling a large iron-rich basal conglomerate for the first time. The exploration target is more than 1 billion tonnes of iron.
During 2010, Dynasty plans to commence detailed commercial investigations that will cover preliminary mine planning, beneficiation process design, mining and processing costs, transport infrastructure, capital costs, environment and native title clearances, and government approvals. A pre-feasibility study is anticipated to commence in late 2010.
Contact:
Dynasty Metals Australia Limited
T: +61-8-9426-8999
F: +61-8-9426-8900
www.dynastymetals.com.au