Iron Mountain Mining Ltd announced it has entered into a Heads of Agreement with United Orogen Ltd to acquire outstanding available interests in three United Orogen exploration licences in the Northern Territory.

Consideration for the deal is Iron Mountain will provide United Orogen 5 million shares in Iron Mountain and 5 million options to subscribe for shares in Iron Mountain exercisable at 20 cents each on or before 1 May 2015.

The agreement covers Lucky U Prospect where United Orogen currently holds a 70 per cent interest and Iron Mountain holds a 30% interest; Florence Creek Prospect where United Orogen currently holds a 50 per cent interest and Iron Mountain holds a 50% interest; and Treasure Prospect where United Orogen and Iron Mountain originally held interests of 70% and 30% respectively prior to entering into a Joint Venture Agreement with Mithril Resources Ltd whereby Mithril has the right to earn up to 80% by spending $2 million over 5 years.

The transaction is subject to and conditional upon the approval of the shareholders of both companies.

All three projects are located northeast of Alice Springs in the Northern Territory. The 252.6 sq km Florence Creek Prospect is prospective for copper and zinc.

The Lucky U Prospect covers a 53.63 sq km project and is prospective for nickel, copper and uranium and the 101 sq km Treasure Prospect is prospective for nickel and tungsten.

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