|
Red Hill Iron Limited (RHI or the Company) was formed in
2005 with the purpose of acquiring and evaluating the
iron ore potential of its extensive tenement package
covering much of the western margin of the Hamersley
Province of the West Pilbara region of Western
Australia.
The Company has 59,878,149 fully paid ordinary shares on
issue and 2,450,000 unlisted options.
The Company's primary assets are its Red Hill Iron Ore
Joint Venture (RHIOJV) interest and its wholly owned
Pannawonica channel iron project as well as its
non-ferrous metal exploration interests (100%) over the
RHIOJV tenements. It also has quarrying opportunities in
the Pannawonica region.
RHI holds a 40% carried interest in the RHIOJV, with API
Management Pty Ltd (API), a company controlled by
Baosteel Group Corporation and American Metals & Coal
International, holding the balance and earning up to 81%
by carrying the Company through to the first sale of ore
from the tenements. The RHIOJV accounts for the
substantial portion of API's West Pilbara Iron Ore
Project (WPIOP), which has proven and probable reserves
of 537 million tonnes. The WPIOP was formed to explore
for and develop iron ore resources in the West Pilbara
and has the stated aim of establishing a rail link to a
proposed new port at Anketell Point to facilitate ore
exports.
The Company has an election right, up to the time of
first commercial sales of ore, either to continue as a
joint venture participant in the RHIOJV with a 19%
contributing interest (which will involve an obligation
to repay API's carry costs out of 80% of the Company's
share of project free cash flow) or to convert its joint
venture interest to a 2% FOB royalty on all RHIOJV
production.
|
