Latest Announcements

May 2 2013

Appendix 3Y - Change in Director’s Interest Notices

April 29 2013

Quarterly Activities and Cash Flow Report 31 March 2013

April 23 2013

Appendix 3Y - Change in Director’s Interest Notices

April 11 2013

Appendix 3B - Issue of unlisted options

March 20 2013

Appendix 3Y - Change in Director’s Interest Notices

March 19 2013

Form 604 - Notice of change of interests of substantial holder

March 15 2013

Interim Financial Report the half-year ended 31 December 2012

February 4 2013

Entitlement Issue: Notice to shareholders

 

 ABOUT RED HILL IRON

 

Red Hill Iron Limited (RHI) was formed in 2005 with the purpose of acquiring and evaluating its extensive tenement holdings that cover much of the western margin of the Hamersley Province of the West Pilbara region of Western Australia. It raised $4 million on public listing in February 2006.

 

The issued capital of RHI is now 49,405,037 fully paid shares with no options or partly paid shares.

 

RHI has made substantial progress with its plans to become a diversified producer from channel iron deposits (CID) located in the Robe River region of the West Pilbara. The Company's primary asset is a 40% interest in the Red Hill Iron Ore Joint Venture (RHIOJV) that is subject to reduction (see below). This joint venture provides the great majority of the CID reserves which are the subject of the API managed West Pilbara Iron Ore Project Stage One development. A mining operation of 30 million tonnes per year is planned based on proven and probable reserves of 445 million tonnes with port and rail link to market and first production anticipated by the end of 2014.

 

Currently, a portion of the RHIOJV proven and probable reserves earmarked for the Stage One development are the subject of a dispute between RHI and API. RHI is also in dispute with API as to whether or not the facilities required to produce ore from the project and link the mining operations to market (including the building of a new port should API participate in its development) are assets of the RHIOJV. 

 

In January 2010, RHI completed the purchase of the Pannawonica CID Project which is situated to the north of the RHIOJV. The 150 square kilometre project area secures two CID mesa systems with a combined strike length of over 14 kilometres. RHI has drilled out some 70 million tonnes of inferred resources grading 54.1% iron and 4.8% alumina at Pannawonica which is somewhat inferior to current CID market specifications but should provide future value to the Company.

 

 

THE RED HILL IRON ORE JOINT VENTURE AGREEMENT

 

API Management Pty Ltd (API) holds a 60% interest and acts as manager. API is equally owned by subsidiaries of Aquila Resources Limited and AMCI Inc. Under the joint venture arrangements, API is responsible for all Project funding until the first delivery of product to customers. At that stage it will have earned an additional 20% interest in the joint venture. RHI will then hold a 20% interest and will be required to repay its 20% share of the costs incurred by API in earning its additional 20% interest (together with interest accrued at Libor plus 2.5%) out of 80% of RHI's share of any future project net cash flow. Up to the point of first product delivery RHI has the right to elect to exchange its project interest for a 2% FOB royalty over total project production which would cancel the requirement to repay debt.