Under the agreement, AUD 500,000 (approximately USD 327,000) will be paid for a six-month option period. If the option is exercised, an additional AUD 500,000 will be payable. Additionally, Newcam will provide an immediate equity injection to the company by purchasing 10 million Alchemy shares at AUD 0.025 per share (USD 0.016).
If the option is exercised, Newcam will finance the exploration and development activities, while Alchemy will participate at the production decision stage. Newcam will act as the project operator.
The project in the Bryah Basin covers high-grade hematite deposits with iron (Fe) content above 65% in the Valley Bore and Old Highway areas, spanning a total area of 527 km². Its proximity to the Great Northern Highway and Sandfire Resources’ DeGrussa and Monty copper operations provides significant logistical and infrastructure advantages. To assess continuity, the first drilling program is planned to commence shortly.
According to market data and AME forecasts, average ROM (Run-of-Mine) iron ore grades in australia are expected to decrease to 52.2% Fe by 2030. As a result, high-grade deposits such as those in the Bryah Basin are becoming increasingly valuable for blending purposes and can attract premium prices. With the global decline in high-grade reserves, the strategic importance of the Bryah project is expected to rise.
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