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GWR grants mining right at Wiluna West iron ore project to Gold Valley

GWR Group Ltd. executed a term sheet with private iron ore developer Gold Valley Iron Pty. Ltd. for the latter to mine up to 3 million tonnes of iron ore from the former's John William Doutch deposit at its Wiluna West iron ore project in Western Australia, according to an Aug. 5 news release.

GWR Group will receive staged payments totaling up to A$5 million cash plus a production royalty linked to the iron ore price in the range of A$1 to A$2 per tonne.

Gold Valley will pay A$500,000 upon signing the agreement and A$1.5 million upon the first iron ore shipment and will make eight quarterly payments of A$375,000 starting after the project management plan is approved.

Gold Valley will undertake mine design, project management, camp operations, crushing and screening, trucking and port logistics and will complete rehabilitation under the approved mine closure plan.