June 22, 2011
Iron Mining Group Announces a 300,000 Metric Ton FOB Iron Ore Sales Contract with One of the World's Largest Commodities Trading Companies.Initial Iron Ore Contract Deliveries to Begin Thursday, June 23, 2011 and Will Continue Daily Through Complete Contract on or before December 31, 2011
Iron Mining Group, Inc. (otcqb:IRNN) announced that, through its wholly-owned subsidiary IMG Iron Ore Trading, S.A. ("IMG Trading"), it has agreed to an Iron Ore Sales Contract for 300,000 metric tons ("MT") of minimum 63 percent Fe iron ore to be delivered on FOB terms to the port of Manzanillo, Mexico (the "Contract"). IMG's counter-party to this contract is a leading global physical commodities company that completed nearly $80 billion worth of commodities transactions in 2010. Per the Contract, delivery of the initial 100,000 MT is due before August 31, 2011 with the balance of 200,000 MT due before December 31, 2011.
IMG Trading is scheduled to complete delivery of its first 1,250 MT tomorrow, June 23, 2011, with a production ramp through the July 1, 2011 where we will average 2,500 MT daily through the balance of the contract. Based on current production schedules, IMG anticipates delivering the first 100,000 MT on or before August 15, 2011 and looks to fulfill the Contract in full within a 120-day period. The Contract's FOB terms provide IMG Trading an advance revenue payment equal to 65 percent of the contract price for iron ore delivered during each previous week. IMG Trading will receive another 30 percent upon the successful delivery of each 100,000 MT with the final balance paid within 30 days thereafter.
"Iron Mining Group's management team as a whole has worked painstakingly to ensure the ability to consistently deliver high-quality iron ore to its customers on an ongoing basis," said Chief Executive Officer, Garrett K. Krause. "Tomorrow's initial iron ore delivery, which will begin immediate and ongoing revenue, is the much anticipated fruit of that labor. With nearly all foreseeable production and delivery hurdles cleared at this point, we are confident that today marks the beginning of a steady ramp in our daily iron ore production volumes, leading to immediate revenue and projected consolidated earnings growth for Iron Mining Group."
About Iron Mining Group, Inc.
Iron Mining Group, Inc. is a diversified global iron ore company with its initial focus in Latin America. The Company has entered this marketplace at a time when the largest iron ore customer, China, seeks to alter the status quo by shifting power away from the traditional iron ore producers. Iron Mining Group has recently launched a global iron ore trading group along with its direct mining operations in Mexico and Chile, where it owns a number of iron ore projects in various stages of development.
source: Iron Mining Group, Inc.
Iron Mining Group Announces a 300,000 Metric Ton FOB Iron Ore Sales Contract with One of the World's Largest Commodities Trading Companies.Initial Iron Ore Contract Deliveries to Begin Thursday, June 23, 2011 and Will Continue Daily Through Complete Contract on or before December 31, 2011
Iron Mining Group, Inc. (otcqb:IRNN) announced that, through its wholly-owned subsidiary IMG Iron Ore Trading, S.A. ("IMG Trading"), it has agreed to an Iron Ore Sales Contract for 300,000 metric tons ("MT") of minimum 63 percent Fe iron ore to be delivered on FOB terms to the port of Manzanillo, Mexico (the "Contract"). IMG's counter-party to this contract is a leading global physical commodities company that completed nearly $80 billion worth of commodities transactions in 2010. Per the Contract, delivery of the initial 100,000 MT is due before August 31, 2011 with the balance of 200,000 MT due before December 31, 2011.
IMG Trading is scheduled to complete delivery of its first 1,250 MT tomorrow, June 23, 2011, with a production ramp through the July 1, 2011 where we will average 2,500 MT daily through the balance of the contract. Based on current production schedules, IMG anticipates delivering the first 100,000 MT on or before August 15, 2011 and looks to fulfill the Contract in full within a 120-day period. The Contract's FOB terms provide IMG Trading an advance revenue payment equal to 65 percent of the contract price for iron ore delivered during each previous week. IMG Trading will receive another 30 percent upon the successful delivery of each 100,000 MT with the final balance paid within 30 days thereafter.
"Iron Mining Group's management team as a whole has worked painstakingly to ensure the ability to consistently deliver high-quality iron ore to its customers on an ongoing basis," said Chief Executive Officer, Garrett K. Krause. "Tomorrow's initial iron ore delivery, which will begin immediate and ongoing revenue, is the much anticipated fruit of that labor. With nearly all foreseeable production and delivery hurdles cleared at this point, we are confident that today marks the beginning of a steady ramp in our daily iron ore production volumes, leading to immediate revenue and projected consolidated earnings growth for Iron Mining Group."
About Iron Mining Group, Inc.
Iron Mining Group, Inc. is a diversified global iron ore company with its initial focus in Latin America. The Company has entered this marketplace at a time when the largest iron ore customer, China, seeks to alter the status quo by shifting power away from the traditional iron ore producers. Iron Mining Group has recently launched a global iron ore trading group along with its direct mining operations in Mexico and Chile, where it owns a number of iron ore projects in various stages of development.
source: Iron Mining Group, Inc.
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