Epsilon enters iron JV with Platypus

West Perth-based Epsilon Energy has entered a joint venture deal over its Mardie iron ore project near Dampier with private company Platypus Resources.

Platypus was advised by Dubai-based resource investment company Exchange Minerals, which according to itswebsite, is backed by a group of experienced Australian investors willing to finance projects.

Under the deal Platypus has paid a non-refundable deposit of $10,000, for an exclusive 45-day due diligence period.

Should due diligence prove successful, Platypus will then pay a further $240,000 to start earning the iron ore rights of the project.

Platypus can earn up to a 90 per cent interest after spending a total of $1.15 million over the next three years.

Once Epsilon's stake in the project is diluted to 10 per cent, it will be free carried until the completion of a prefeasibility study.

The deal allows Epsilon to focus on its Balladonia energy project.

Earlier this year, Epsilon had signed a memorandum of understanding with a Chinese agent Heibei Resources for the joint development of the project.

Epsilon executive director Richard Monti said if the Platypus due diligence is successful, the MoU with Heibei will be terminated.

Shares in Epsilon were unchanged at five cents at 15:35 AEST.