Red Hill Minerals signs $1M iron deal
Key points
- Red Hill Minerals agreed to an option deal to divest its Pannawonica Iron Project in Western Australia.
- The transaction provides an upfront $150,000 fee and up to $1 million in cash or shares upon option exercise.
- The agreement supports the company's core strategy to build and expand long-term mining royalty streams.
Red Hill Minerals (ASX:RHI) agreed to divest its Western Australian iron project under an option deal worth up to $1 million.
Arrow Minerals (ASX:AMD) secured an exclusive 12-month option over the seven tenements while covering all ongoing holding costs.
"The proposed transaction provides Red Hill with upfront consideration while retaining a long-term royalty interest in the Pannawonica Project and surrounding tenements within the Area of Influence if the option is exercised," said Red Hill Minerals Executive Chairman Joshua Pitt.
Red Hill will collect an upfront $150,000 fee and retain an uncapped 1.5% gross royalty on future project iron sales.
Following the announcement, the Red Hill Minerals share price was unchanged at $4.17.
The transaction will expand an existing portfolio that includes an iron royalty generating cash flow from Onslow since May 2024.
Red Hill also holds gold royalties over Brightstar's Sandstone Hub and copper-gold royalties with Legacy Minerals.
