Heirro IMG Mexico, a subsidiary of Iron Mining Group (IMG) has signed an exclusive iron ore development agreement with Minera BarraNava, to explore mineral concessions in Mexico.

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.