Cazaly sells 51% of Hamersley iron project

Saint Istvan Gold Ltd, a company whose directors include former NSW premier Neville
Wran, has bought a majority stake in the Hamersley iron ore exploration project in
Western Australia.
Shares in Cazaly Resources Ltd, which sold the stake for $4 million, shed three
cents, or six per cent, to 47 cents while shares in Saint Istvan were untraded.
Cazaly on Monday said Saint Istvan had the right to earn an initial 51 per cent
interest in the project in WA's Pilbara region, which hosts the Winmar iron ore
deposit.
Saint Istvan will pay the $4 million in three separate tranches within 60 days.
Saint Istvan also has the right to buy the remainder of the project under certain
circumstances.
Cazaly also said it would manage and operate the project while Saint Istvan will
provide up to $6 million towards a feasibility study within three years.
"During this period, CAZ's (Cazaly's) interest in the project is effectively free
carried," Cazaly said in a statement.
Cazaly said the sale allowed it leverage the Hamersley project, which it believed
had huge potential, while focusing on its Parker Range iron ore project, also in WA.
The Hamersley project is next to Fortescue Metals Group Ltd's Solomon project, which
is a key part of Fortescue's expansion plans.
Cazaly also on Monday said its co-managing director Nathan McMahon would join the
board of Saint Istvan.
Saint Istvan in February advised that a deal to acquire a 33 per cent stake in a
Hungarian gold explorer had been terminated so it would instead seek other
opportunities.



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