Venture Minerals has completed the transfer of the Riley iron ore mine in Tasmania, Australia, to Goldvalley Brown Stone for A$3 million, equivalent to approximately US$2.02 million. This deal follows last month’s announcement in which Goldvalley Brown Stone acquired Venture Iron, the company that owns the mine.
From iron ore mine to rare earths
This agreement represents a significant step forward for Venture in its effort to increase its cash reserves and focus its efforts on the development of its recent rare earths discovery. rare earths discovery at Jupiter, located in Western Australia. Argonaut PCF, which served as a consultant, conducted a strategic assessment of the mine, which has been on maintenance since 2021.
The evaluation considered various alternatives such as restarting operations, forming a joint venture or proceeding with the sale. Ultimately, it was decided that sale was the most viable option, given the marginal economics of the project, the short life expectancy of the mine and the need for additional capital. A competitive process culminated in the decision that the sale offered the best opportunity to realize its value.
Venture Minerals and Goldvalley Brown Stone
Venture Minerals’ CEO, Philippa Leggat, highlighted the thoroughness of the sale process, mentioning that “a total of 45 parties evaluated the mine, and the offer submitted by Goldvalley was considered the most beneficial to our shareholders.“. The proceeds will be invested in the Jupiter rare earths project, with plans to submit the first resource estimate by the last quarter of the year. “Jupiter represents a momentous discovery, made less than a year after completing 22,000 meters of drilling,” Leggat added.
For its part, Goldvalley will assist Venture Minerals in the transfer of the relevant government approvals and will assume the bank guarantee that Venture had with Mineral Resources Tasmania for the mine operating license.
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Source: miningtechnology
Photo: Shutterstock
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