In an extremely positive development for the shareholders of Venus Metals Corporation Ltd (ASX:VMC), the company has sold its 50% interest in the Yalgoo Iron Ore Project for $2.5 million.
The Yalgoo Iron Ore project has a total JORC 2012 Mineral Resource of 698.2 Million tonnes at 29.3% iron.
This represents the divestment of what management referred to as a ‘stranded asset’ for the group given the substantial capital expenditure that would have been required to fully develop the project through to production.
An Australian company FIJV, ultimately controlled by a major engineering, procurement, and construction (EPC) contractor with over three decades' experience in the iron ore sector has acquired the project.
Shareholders will reap the rewards of the sale as the issued capital in Yalgoo Iron Ore, a wholly-owned subsidiary of Venus Metals is to be distributed to VMC shareholders on a pro-rata basis by way of a dividend, allowing those shareholders to potentially reap the benefit of any royalty payments.