Centrex Metals has offloaded its South Australian iron ore projects to local steel maker OneSteel Manufacturing for A$10 million in royalties as it targets production from its Ardmore phosphate rock project.
OneSteel will pay royalty streams to be capped at A$5 million to Centrex for each of its Wilgerup iron ore project and Kimba Gap iron ore project.
If OneSteel hasn’t committed to mining either of the projects within the next 10 years the relevant project will be returned at Centrex’s election.
Completion of the deal is subject to certain conditions, including ministerial approval.
The sale of the last of Centrex’s wholly owned iron ore assets marks the Company’s further focus on its fertiliser mining developments, including its flagship Ardmore Phosphate Rock Project in North West Queensland.
The company is targeting phosphate production next year at Ardmore.
Shares in Centrex closed the day at 14.5c.