Cazaly handballs Hamersley to Winmar19-May-11 by Staff...

Cazaly handballs Hamersley to Winmar
19-May-11 by Staff Reporters

Cazaly Resources has announced the execution of an agreement to offload its Hamersley iron project in the Pilbara to Winmar Resources for $35 million and a royalty grant.

The acquisition by Winmar is a variation of a farm-in heads of agreement signed by the two companies in October last year in regards to the Hamersley project.

Winmar is currently earning into a 51 per cent interest in the tenements, and will exercise an exclusive option to acquire the remaining 49 per cent from Cazaly.

Winmar will also pay an option fee of $100,000 for a two-month option period.

AT 11:13AM (WST) Cazaly shares had jumped 13.3 per cent, to trade at 34 cents, while Winmar's stock gained 4.17 per cent, to trade at 25 cents.