Australia-based exploration and development company CZR Resources has signed an agreement with Miracle Iron Resources to sell the Robe Mesa Iron Ore Project for A$102m ($68m).

Under the terms of the agreement, Miracle Iron will acquire Zanthus Resources, a wholly-owned subsidiary that controls an 85% stake in the Robe Mesa project, to Miracle Iron.

CZR will receive A$102m in cash, comprising A$81.6m upon completion and A$20.4m on the first shipment or 30 June 2025.

Its Board of Directors unanimously recommended its shareholders vote in favour of the transaction in the absence of a superior proposal being received.

The transaction is expected to be completed conditional upon shareholder approval, FIRB and Chinese government approvals and other customary closing conditions.

CZR managing director Stefan Murphy said: “This sale will unlock substantial value for CZR shareholders with a cash transaction in a very timely fashion. The sale price reflects not only the value we have created at Robe Mesa but also the significant potential of the project, ensuring CZR shareholders get appropriate value for the project.

“The transaction will also remove CZR’s funding and development risks associated with the project while delivering CZR a very substantial cash balance. At the same time, we will retain our Croydon gold project, along with strike from De Grey Mining’s multi-million-ounce Hemi gold discovery, and the Buddadoo vanadium-titanium project in WA.”

Miracle Iron is an emerging resource development company closely linked with its parent company, China-based Shenzhen Naao Jianglan Investment (SNIC).

SNIC is a subsidiary of Xinjiang Jiangna Mining Corporation, a Chinese company involved in resources, power generation, investment, finance, and R&D of zero-carbon technologies.

The Robe Mesa deposit is a low-strip ratio, low-capex Direct Shipping Ore (DSO), with a rapid, low-cost path to production.

It has Ore Reserves of 27.3Mt at 55.5% Fe with a Resource base of 45.2Mt at 56% Fe.

In October last year, CZR unveiled the results of a definitive feasibility study of the Robe Mesa project identifying exceptional financial returns with low costs and strong free cash flow.

The study suggested that financial returns could rise to A$1.3bn free cash flow at current iron ore prices, with a 62% base case internal rate of return rising to 159% at current iron ore prices.

The company also reported updated ore reserves, with an increase from 8.2 million tonnes to 33.4Mt, while production rates were increased from 2Mtpa to between 3.5 and 5Mtpa.