Australian Jinhua Mining International Group has paid InterMet Resources a $383,000 deposit for the purchase of the Mt Lucy iron ore prospect in north Queensland.

InterMet believes that payment of the deposit displays the intentions of Australian Jinhua to proceed with the transaction.

Completion of the sale and payment of the Aus$3.447 million balance of the purchase price will not occur until after:

The grant of a mining lease including the satisfactory resolution of an objection lodged by a third party.

The exercise of an option agreement by InterMet over the resultant mining lease and InterMet becoming the registered holder.

Australian Jinhua completing and being satisfied, at its sole and unfettered discretion, by the results of a number of investigations in respect of the mining lease.

If the conditions are satisfied under the sale and purchase agreement, Australian Jinhua will acquire the mining lease from InterMet.

www.intermetresources.com.au