Iron ore mining firm Grange Resources Ltd (ASX: GRR) said on Friday that it is set to spin off two non-core assets, one of which is offshore operation, which should enable the Perth-based company to concentrate on its main business within Australia.

The company said that it would divest its 79.3 percent stake in the Murchison Copper Mines to Horseshoe Metals Ltd while its 51 percent holdings in the Bukit Ibam magnetite mine and 100 percent of associated tailing area in Malaysia would be transferred to Esperance Mining Sdn Bhd.

Grange managing director Russell Clark said that the latest asset divestment moves paved the way for the company to focus on its current magnetite pellet operations in the Savage River mine southwest of Burnie in Tasmania and the further development of its Southdown project, which is near Albany in Western Australia.

The company said that it is set to receive 3.92 million shares and 1.3 million 20 cent options in Horseshoe Metals for Murchison deal as it added that "Horseshoe Metals will put up the necessary bonds for the tenements, releasing $1.1 million worth of bonds back to Grange and repay debts to Grange of about $900,000."

Grange noted that Horseshoe had already raised $7 million when it held its initial public offering and is scheduled to begin trading on the Australian Securities Exchange (ASX) by the end of July.

As for the Malaysian deal, Esperance Mining has agreed to make cash payment of up to $3.5 million to Grange and another cash payment of $1 million to cover for the tailings projects.

As of 1348 AEST on Friday, Grange shares were trading at 51 cents, gaining by two cents or 4.08 percent from the previous trading day.