Billionaire prospector Mark Creasy’s CZR Resources is set to sell its interest in the Western Australian Robe Mesa iron ore project to Miracle Iron Resources.
The deal comes days after Miracle bought up the Paulsens East iron ore project in the Pilbara in a $20.5 million deal with Strike Resources.
CZR to receive a $102 million cash consideration for its 85 per cent interest in Robe Mesa, equal to approximately $0.43 per CZR share.
“This sale will unlock substantial value for CZR shareholders with a cash transaction in a very timely fashion,” CZR managing director Stefan Murphy said.
“The sale price reflects not only the value we have created at Robe Mesa but also the significant potential of the project, ensuring CZR shareholders get appropriate value for the project.
“The transaction will also remove CZR’s funding and development risks associated with the project while delivering CZR a very substantial cash balance.
“At the same time, we will retain our Croydon gold project, along strike from De Grey Mining’s multi-million ounce Hemi gold discovery, and the Buddadoo vanadium-titanium project in WA.”
The sale to Miracle will still need to be approved by shareholders to be completed.
Miracle is an emerging resource development company closely linked to its China-based parent company Shenzhen Naao Jianglan Investment Co. (SNIC).
SNIC itself is a subsidiary of Chinese incorporated company Xinjiang Jiangna Mining Corporation.
Xinjiang is involved in resources, power generation, investment, finance, industrial operations and the research and development of zero-carbon technologies.
Miracle Iron will provide funding to Zanthus of up to $4 million to cover project expenditure until the sale is completed.