Brockman is currently drilling the South Pilbara Iron tenements and should have a JORC compliant resource by April 2014. Potentially SFX could see another $6 mil being paid from Brockman in May 2014 as outlined below.
A supplementary cash payment of $0.10/tonne for all JORC compliant Mineral Resources (Measured, Indicated and Inferred categories) defined on any or all of the tenements, using a lower cut-off grade of 54% Fe.
Sheffield has previously outlined an Exploration Target1 of 20-60Mt @ 56-60% Fe (see ASX release 1 December 2011) on the sale tenements and identified further iron mineralisation as outlined in the ASX release dated 28 January 2013;
Also ? A royalty of 1% FOB of all iron ore produced from the tenements. In addition, a price participation royalty of 5% would be applicable for all revenues received over $120/tonne FOB (CPI indexed)( current Iron Ore price $130/tonne) for iron ore sales from the tenements (i.e. an additional 4% on the amount by which the indexed FOB price exceeds $120/tonne);
SFX Price at posting:
56.0¢ Sentiment: Buy Disclosure: Held
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