Lincoln Minerals (LML) has proposed to buy back all of the 40% interest in the Gum flat iron ore project that it does not already own. The 40% stake is currently held by Mineral Enterprises Ltd (MEL) and MEL subsidiary, Mineral Enterprises Australia Pty Ltd (MEA). Lincoln and Mineral Enterprises have signed a Contract for the Sale of Joint Venture Interest under which, subject to finance, Lincoln will re-acquire the 40% interest in the Gum flat iron ore project on Exploration Licence EL 3422. The project is located on southern Eyre Peninsula in South Australia. During the period of the JV, MEA funded air core, diamond core and reverse circulation drilling programs that led to the definition of a 55 million tonnes magnetite iron ore inferred resource and a 0.6 million tonnes hematite DSO inferred resource within a 125 million tonnes to 210 million tonnes iron ore exploration target. In conjunction with this contract, LML is negotiating with several interested parties, including Chinese steel and iron ore mining companies, to provide finance through potential investment and off take agreements for the project.
