It is reported that West Perth based Sipa Resources has agreed to sell a small exploration licence in the Mid West to Sinosteel Midwest Corporation for USD 450,000.

Sipa will also receive a 0.2% FOB royalty for any iron ore production from the E20/546 licence, located on the southwest end of the Weld Range area. The licence, considered a non core asset for Sipa is adjacent to several properties currently held by Sinosteel.

The agreement is conditional on approval from the Foreign Investment Review Board as well as shareholder approval.

Sipa said it expects the agreement to be completed by the end of the year. The funds will be used for working capital.

Sinosteel Midwest Corporation was formed in July last year after Sinosteel took over iron ore miner Midwest Corporation for USD 1.36 billion. It was the first time that a Chinese state backed group had gained control of an Australian resources company.

(Sourced from www.wabusinessnews.com.au)