🕐27.10.14 - 01:54 Uhr

HODGES RESOURCES LTD. [ASX:HDG] - HODGES SECURES FUNDING, ACQUIRES RIO TINTO INT
EREST IN IRON SANDS PROJECT, NZ





Fortbridge Media Release

Hodges Resources Ltd. [ASX:HDG] - Hodges secures funding, acquires Rio Tinto interest in iron sands project, NZ

Hodges Resources Ltd (ASX: HDG) (Hodges or the Company) is pleased to announce that it has reached an agreement with Rio Tinto Mining and Exploration Limited (RTME), on the acquisition of their interest 60 per cent in and rights to an iron sands project (Project) in North West New Zealand.

Highlights:

* 3 million dollars Facility Agreement secured
* Advanced exploration work program and operational concept, with no infrastructure constraints or dependencies.
* Potential for a large scale, long life and low cost operation.

The Agreement involves RTME selling their interest and rights in a Farm-In and Joint Venture for the Project, a potentially large scale iron sands project in the North West of New Zealand.

Mark Major (Managing Director of Hodges) said the transaction could represent a company making deal, We have identified two highly prospective projects and have also been able to negotiate terms that involve a low entry cost, with a deferred payment once the Project moves into production. This transaction could represent a company making deal for Hodges.

Under the terms of the agreement, Hodges will acquire the interest of RTME in the project by:

* Payment of a non-refundable deposit of 100,000 NZ dollars cash on execution of the agreement;
* Payment of renewal invoices as they come due in coming months for both permits;
* Payment of 5,000,000 NZ dollars upon commencement of commercial production of iron ore product from the Project and;
* A royalty payment on commercial production of US1 dollar per tonne for the first 10Mt and US0.50 dollar for the next 90Mt produced. No royalty after 100Mt of commercial production.

To view the full announcement please click on the link below:

For further information please contact:

Mark Major
Managing Director
T: (+618) 9322 6412
E:

For media and investor inquiries, please contact:

Fortbridge / Sydney
Bill Kemmery
Tel: +61 400 122 449
Email:




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