Cazaly Resources said that the sale of its West Kalgoorlie gold assets will allow it to focus on its Goldfields iron ore project. The Perth based miner has sold the assets to Phoenix Gold Limited in exchange for USD 3.5 million in cash and shares.

Cazaly will receive another USD 2.5 million in cash upon Phoenix's completion of drilling and production milestones.

One of Cazaly's managing directors, Mr Clive Jones, said that the sale will help with the development of its Parker Range iron ore project, near Southern Cross. He added that "We have arranged finance agreements to finance the bulk of the capital requirements of the project. But we still need to get on and do other things. There's still more exploration to do a huge amount of exploration to be done at Parker Range.

He said that "Indeed at our other iron ore projects, we have other projects in the Pilbara and elsewhere in the state that we want to develop."

(Sourced from www.abc.net.au)