Thursday, 27 Jan 2011
London Mining announced that it has signed an offtake agreement with the trading house Glencore International AG.
The offtake will cover 9.5 million WMT production from Phase 1A of the Company's Marampa project.
The five year agreement, which includes a pre-payment facility for up to USD 27 million, will provide guaranteed offtake and shipping from Sierra Leone for all Phase 1A production, with the option for London Mining to expand the agreement to Phase 1B on the same terms.
The offtake will be priced at around Platts 62% CFR China benchmark, with an upward adjustment for the Fe content of the Company's 65% Fe sinter feed concentrate and an incentive to place product at locations such as Europe where there is a net pricing benefit through lower shipping costs.
The offtake accommodates London Mining's ramp up expectations and is flexible to accommodate varying shipping sizes and frequencies to supply European, Chinese and other markets.
Mr Graeme Hossie CEO of London Mining said “This offtake agreement is an important development for the Marampa project. It provides London Mining with certainty of proceeds directly correlated to the benchmark CFR China price, positive working capital and provides an external validation of the high quality of our product. In addition, it gives us a reliable counterparty which will also provide shipping and agency services for us if we wish to supply particular steel industry clients from our next stage expanded production."
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment