Thursday, November 24, 2005 ECHELON Resources has walked away from the iron ore assets of Heron Resources just over two months after first flagging the deal.
No reasons for the Echelon termination were given, with a statement saying the company's board "has not been able to complete a number of matters with Heron".
Heron's managing director Ian Buchhorn wouldn't be drawn on the matter, and said it was to early to say what the company would now do with its iron ore assets.
Heron was to have received 25 million shares and 10 million performance options for its iron ore assets, which included Bungalin (near Koolyanobbing) and other tenement packages in the Pilbara region. Shares in Echelon were at the time trading in a range of 30-35c.
The deal was put together by Heron's corporate advisors Argonaut Capital, which also agreed at the time to undertake a $3 million placement for Echelon priced at 27c per share.
Early in October Echelon entered into an agreement with current boom iron ore stock Cazaly Resources, whereby Echelon was to provide "technical capability and [funding] for a drilling program on the Shovelanna iron ore project".
Shovelana is near iron ore mines owned by BHP Billiton and has been held for many years by Rio Tinto. Ownership of the project is currently subject to dispute between Rio and Cazaly after the latter applied for the tenement when it came up for renewal in September.
Echelon is led by former Robe River executive Matthew Rimes.
Prior to a trading halt called yesterday, shares in Echelon last changed hands at 56.5c.
ECH Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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