Ferrowest granted Padbury a 60 day option to acquire the Yogi Mine Project tenements in Western Australia’s Mid-West region for $750,000 in December 2014.
The Agreement, inked on 18 December 2014, was scheduled to settle on 31 March 2015, following the 33 day extension from the original settlement.
“Ferrowest was ready, willing, and able to settle the sale, however, Padbury advised it was unable to complete the sale and needed more time,” Ferrowest said in an ASX Announcement.
“The failure by Padbury to settle the transaction constituted an event of default under the terms of the Agreement and Ferrowest issued a notice of default to Padbury requesting that the contract of sale be honoured. Padbury has failed to rectify the default in the prescribed time and, as a consequence, the contract of sale formed pursuant to the Agreement has now terminated.”
The decision to offer the project to Padbury came as a result of the sustained downturn in the iron ore market.
The Yogi magnetite mineralisation consists of a 30 kilometre long strike of magnetite banded iron formation trending north-south, 14 kilometres due east of Yalgoo.
“The Board has determined that it will continue to entertain offers to purchase the Yogi Mine Project outright for A$750,000 in cash in the short term but reserves the right to withdraw its potential sale from the market and/or vary the terms of any possible sale at any time,” reads the ASX Announcement by Ferrowest Limited.
Ferrowest is actively pursuing three major iron related projects in Western Australia and the Northern Territory: The Yogi Mine Project, The Eradu MPI Project and The Yalyirimbi Iron Project.