BCI Minerals Limited (ASX: $BCI) has entered into a binding agreement to sell its Iron Valley iron ore assets to Polaris Metals Pty Ltd, a wholly owned subsidiary of Mineral Resources Limited, for up to $72.6M. The transaction is expected to be completed in July 2024, providing cash flow certainty to fund non-Mardie expenditure. BCI will continue to focus on safely delivering the Mardie Project.
BCI's Managing Director, David Boshoff, stated, 'BCI appreciates the successful partnership it has had with MinRes and welcomes the opportunity to sell the Iron Valley assets. The proposed sale is a strategic decision that enables BCI to realize $60.1M certain value for these assets, plus a further contingent $12.5M, and continue to focus on safely delivering the Mardie Project on schedule and on budget, providing value to our shareholders and multi-generational benefits to the community.'
BCI Minerals (ASX: $BCI) has announced the sale of its Iron Valley iron ore assets to Polaris Metals Pty Ltd, a subsidiary of Mineral Resources Limited, for up to $72.6M. The transaction provides cash flow certainty to fund non-Mardie expenditure. BCI will receive $26.0M at completion of the Transaction, with a further payment of $12.5M contingent on commencement of mining at the Iron Valley North Pit by Polaris. The existing Iron Ore Sale and Purchase Agreement with MinRes will terminate upon completion of the Transaction, with BCI receiving a final deferred payment of $34.1M in July 2025. Polaris will assume responsibility for payment of state and third-party royalties and rehabilitation obligations in relation to the Iron Valley mine. BCI's strategic objective to develop an industrial minerals business with Salt and SOP as the initial focus is further emphasized through this divestment, creating value for shareholders and simplifying operations. The company will continue to focus on safely delivering the Mardie Project, with the sale of Iron Valley assets strengthening this commitment. The Managing Director, David Boshoff, highlighted the strategic nature of the sale, enabling BCI to focus on delivering the Mardie Project while providing value to shareholders and the community.