As per the terms of the agreement, Fe will receive A$250,000 ($222,483) in cash including a deposit of A$50,000 ($44,496.5), retain a net smelter royalty on gold recovered from the mine and tailings as well as 10% of profits on any subsequent sale of freehold land.
Fe will also receive A$2.2m ($1.95m) reimbursement of environmental performance bonds after the settlement, the company added.
The purchaser has to complete technical and legal due diligence the project and its assets by 29 August 2013 to conclude the agreement.
Following the sale, the company is keen to explore the Mt Ida iron ore project in the Yilgarn Iron Province of Western Australia. The exploration program includes first pass drilling to test outcropping mineralization with a focus on direct shipping grade hematite targets.
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