7 March 2014
GINDALBIE FURTHER STRENGTHENS CASH RESERVES AFTER COMPLETING SALE OF SHINE PROJECT TO MT GIBSON IRON
Upfront cash payment of $12M received following satisfaction of all conditions precedent
Gindalbie Metals Limited (ASX: GBG - "Gindalbie") is pleased to advise that the previously announced sale of its
100%-owned Shine Hematite DSO Deposit, located 40km north-east of the Karara Project, to Mount Gibson Iron
Limited (ASX: MGX) has been completed, with the Company receiving the $12 million cash consideration.
Mt Gibson reached agreement to acquire the iron ore rights over the Shine tenements in December last year for total consideration of $15 million plus a trailing price participation royalty. In addition to the $12 million upfront payment, a further milestone payment of $3 million is due on the first commercial sale of iron ore - effectively a non-refundable pre-payment on the price participation royalty.
Under this royalty, on a month average for every A$1 the Platt's 62% price is above A$115 per tonne Gindalbie will
receive an additional A$0.20 per tonne sold with the $3 million having been prepaid under the milestone payment.
The sale crystallises significant upfront value for one of Gindalbie's 100%-owned assets in the Midwest region and represents a positive outcome for shareholders. The proceeds of the sale will further strengthen Gindalbie's balance sheet, and increase its cash resources which stood at $35.5 million at the end of the December 2013
Quarter.
The sale of the Shine Project is consistent with the continued focus on completing the ramp-up of the Karara magnetite project to Stage 1 capacity.
Released by : | On behalf of: |
Nicholas Read Read Corporate | Mr Dale Harris Managing Director |
Telephone: (+61-8) 9388 1474 | |
Mobile: (+61) 419 929 046 | |
Mr Michael Weir Manager Corporate and Investor Relations Telephone: (+61-8) 9480 8700 www.gindalbie.com.au |
Level 9, London House
216 St Georges Tce Perth
Western Australia, 6000
PO Box 7200, Cloisters Square, PERTH Western Australia 6850
W: www.gindalbie.com.au
T: +61-8 9480 8700
F: +61-8 9480 8799
E: gbg@gindalbie.com.au
ASX: GBG
Issued Shares: 1.49B
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