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Tao Commodities to acquire iron ore tenement portfolio in Western Australia

Tao Commodities Ltd. secured an exclusive option to buy a portfolio of iron ore assets in Western Australia covering 874 square kilometers by acquiring DSO Mining Pty. Ltd.

DSO Mining holds rights to a portfolio of 26 tenements, including three granted and 23 pending exploration licenses for bedded and channel iron-type iron ore projects. Tao plans to raise A$2.5 million at 12 Australian cents per share to help finance exploration at the tenements.

Rock chip sampling at the tenements by DSO Mining in early 2019 returned results of between 25.6% and 66% iron.

Tao has issued 416,667 common shares to secure the option and will issue a further 22,916,667 common shares, 15.0 million options and 12.50 million performance shares on settlement.

Tao also agreed to grant DSO Mining a 2% net smelter returns royalty on all future metals produced from the tenements.