It is reported that AusQuest has reached agreement with Dragon Energy to sell its two iron ore projects in the Pilbara region of Western Australia for a total purchase price of USD 7.5 million.

This includes a payment of USD 0.5 million for the Nameless Project (100% AQD) and USD 7.0 million for the Rocklea Project (75% AQD) through its wholly owned subsidiary Fortescue Resources Pty Limited. The proceeds from the divestment of these non core assets will be used to fast track higher priority projects in West Africa and Australia.

Both AusQuest and its JV partners at Rocklea have agreed to the sale of their interest to Dragon. AusQuest’s share of the Rocklea final payment will be 75%. Completion of the Rocklea sale is conditional on Dragon securing finance before the January 19th 2011.

Cash payments for Rocklea will be made in three installments: USD 4.5 million on completion (on or before January 19th 2011), USD 1.5 million 12 months after completion and USD 1.0 million 24 months after completion.

Should payment not be made, the tenement will revert back to AusQuest (via its 100% holding in Fortescue) and its JV partners. All conditions for the sale of the Nameless Project have been satisfied and payment received.

On July 8th 2010, AusQuest reported further encouraging results from drilling by the Comoe JV in Burkina Faso, West Africa, with drilling intersecting near-surface gold mineralization at the Siniko West prospect.

(Sourced from www.proactiveinvestors.com.au)