Dragon Energy Limited (ASX:DLE) Completed Settlement Of Rocklea Project
Perth, Jan 20, 2011 AEST (ABN Newswire) - Dragon Energy Ltd (ASX:DLE) is pleased to announce that it has completed the A$4.5m settlement payment for the Rocklea Project (E47/1024-I) in the Pilbara iron ore province and has assumed 100% title for the tenement. The payment was made to AusQuest Limited (ASX:AQD) and its Joint Venture partners ( "Vendor") on 19 January 2011. Under the agreement with the Vendor, the Company will make two additional payments, being:
- A cash payment of A$1.5m on or before 19 January 2012; and
- A cash payment of A$1.0m on or before 19 January 2013.
Funding for this A$4.5m payment was through the Company's internal resource and a A$3.5m loan from major shareholder ("Shareholder Loan"), the Shandong Taishan Sunlight Group Company Limited ("Shandong Group"). The Shareholder Loan is unsecured, interest free and repayable on completion of the upcoming A$21.4m underwritten rights issue (see announcement on 12 January 2011 and prospectus lodged on 18 January 2011). As stated in previous announcements, Shandong Group has committed to underwrite a minimum of A$18m for the rights issue.
Commenting on this settlement, Dragon Energy's Managing Director Gang Xu said:
"Dragon Energy is pleased to complete this acquisition. We will now focus on fast tracking exploration and evaluation of Rocklea and its neighbouring Nameless tenement - our flagship iron ore projects."
"Our major shareholder, the Shandong Group, has once again demonstrated their support by funding the settlement on favourable terms to the benefit of all shareholders."
Rocklea Project (E47/1024-I):
The Rocklea Project comprising 35km2 in area is located 33km southwest of the mining town of Tom Price, and immediately north of Murchison Metals' (ASX:MMX) (PINK:MUMTF) Rocklea CID Project.
In the 1970s Hamersley Exploration Pty Ltd (now Rio Tinto) (ASX:RIO) (NYSE:RIO) outlined a small resource on this project. Between 2005 and 2009, AusQuest enhanced and expanded the resource. On 17 August 2009 AusQuest reported a JORC Inferred Resource of 63.1Mt grading 53.4% Fe (60.4% caFe), including a higher grade component of 28.2Mt grading 55.6% Fe (62.7% caFe). Calcined Iron grade (caFe) is a measure of iron content upon the removal of volatiles (i.e. LOI), and is a more relevant measure of the quality of iron ore deposits.
This resource is open to the south and east. Outcropping CID in the NE and the noncontiguous portion of the tenement to the south have not been drill tested.
An assessment of the project will be carried out with the aim of undertaking a step-out and exploratory drilling programme targeted to expand the resource, followed by a scoping study.
For the complete Dragon Energy Limited announcement including table, please refer to the following link:
About Dragon Energy Ltd
Dragon Energy Limited (ASX:DLE) listed on the Australian Securities Exchange in February 2009. Dragon's flagship projects are Rocklea and Nameless Iron projects in the Pilbara region with a sizeable JORC resource defined at Rocklea and significant CID exploration targets at the Nameless Project. Dragon Energy's portfolio of tenements has numerous multi-commodity targets, including Fe, Mn, Au and U in Western Australia.
Rio Tinto Limited
Murchison Metals Limited
Dragon Energy Ltd