Rio Tinto (ASX:RIO) has entered an exclusive agreement to negotiate for the rights to onsell the iron ore from Iron Ore Holdings’ (ASX:IOH) new Phil Creek deposit.
News of the agreement has sent Iron Ore’ shares soaring 18.9% to $1.76 today.
The potential deal would see up to 1.5 million tonnes sold to Rio Tinto annually, to be onsold as part of Rio Tinto’s product range.
As part of the exclusive agreement, Rio Tinto will also examine Iron Ore Holdings’ Iron Valley deposit, with the eye to purchasing “part or all of the lease covering the deposit,” Rio Tinto said in a statement.
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