Announced this morning.....ASX Release3 August 2009CAZALY...

Announced this morning.....

ASX Release
3 August 2009
CAZALY REACHES AGREEMENT TO BUY GONDWANA’S INTEREST IN
PARKER RANGE
Australian diversified resources company Cazaly Resources Limited (ASX: CAZ) (“Cazaly” or “the
Company”) has increased its stake in the Mt Caudan tenement area, located in the Yilgarn iron ore
district of Western Australia, from at least 80% to 95% after reaching agreement with Gondwana
Resources Limited (ASX: GDA) (“Gondwana”) and others.
Under the terms of the original Mt Caudan Iron Ore Farm in between Cazaly and Gondwana,
Cazaly obtained the right to earn an 80% interest in the sole and exclusive right to explore for and
mine iron ore within the tenement area, with Gondwana retaining a 20% interest in the iron ore
rights and the right to explore for and mine gold and all other minerals other than iron ore.
A small portion of this tenement area was also covered by an additional agreement in which
Gondwana held 15% of the residual iron ore rights and other parties the remaining 5%.
As part of the agreement reached with Gondwana and others Cazaly has agreed to pay a total of
A$270,000 and either issue A$842,500 worth of Ordinary Cazaly shares (based on a 10 day VWAP
prior to the shares being issued) or make an additional payment of A$842,500 (subject to the
discretion of the Cazaly Board).
Of the total consideration Gondwana will receive A$250,000 and be issued A$750,000 worth of
Cazaly Ordinary shares (or equivalent cash payment), with the outstanding to be issued to private
individuals not associated with either party.
Cazaly Managing Director Nathan McMahon believes the Mt Caudan tenement area is fast shaping
as a key iron ore province and for the company to have secured such a significant stake is a real
coup.
“We feel Mt Caudan will prove to be an important iron ore project in the Yilgarn region, and to have
secured a 95% stake in it is a real coup for Cazaly and its shareholders,” Mr McMahon said.
The Parker Range Iron Project, located within the Mt Caudan tenement area, is ideally located in
southwest Western Australian, approximately 400km from Perth and 60 km by road south of
Southern Cross.
The Resource Estimate for the Mount Caudan deposit at the project is currently 23.5mt @ 55.4%
Fe, which a recently completed Scoping Study has confirmed could economically sustain a 2-4mtpa
operation. Importantly the company has commenced rail access discussions with private rail
company Westnet Rail and recently signed a MoU with Esperance Port Authority to ensure its
export requirements can be incorporated into the Port Authority’s expansion plans.