Under the terms of agreement, Heirro IMG Mexico will pay Minera BarraNava a royalty of $10 per metric tonne of iron ore sold through the agreement and a 35% profit share of all iron ore mining profits generated.
The mineral concessions covers about 4,800 hectares with strong iron ore interest, identified by Heirro IMG Mexico.
The firm has started a ground magnetometry study to identify the potential mineral resource, and will later conduct a core-drilling programme to confirm and quantify the ore bodies identified.
The firm intends to complete the necessary applications for exploration and exploitation permits with the Mexican environmental authority.
