Correction 62% Fines Iron Ore now US$119 a tonne not $150.
Hi Early
Will Ironclad sign a strategic big deal with a major iron ore miner or a emerging Graphite producer shortly with their Lucky Bay Port Facility. Valence Industries (VLX) hope to commence their first shipment of Graphite by the end of the year after upgrading their nearby Processing plant for $3.6 million a year. Lucky Bay Port Facility is a valuable asset, for IronClad and Trafford. They are in a commanding position, once financing is arranged. Read below something of interest:
Rutila Resources inks iron export deal, secures $10 million funding Thursday, February 27, 2014 by Proactive Investors
Rutila Resources has inked an iron export deal and secured $10 million funding. Rutila Resources (ASX:RTA) should trade substantially higher after its Balla Balla Joint Venture with Todd Minerals entered an agreement with Flinders Mines (ASX:FMS) to provide Flinders with transportation and port handling for its proposed Pilbara Iron Ore Project. .
The Alliance Agreement contemplates the use of the proposed Balla Balla vanadium–titanium–magnetite mine export facility’s design surplus to provide Flinders with up to 30 million tonnes per annum of export capacity.
Flinders' use of the surplus capacity would enable the capital costs of the facility to be shared across a larger tonnage, significantly reducing unit costs per tonne of ore, thus enhancing the economics of the respective projects.
The joint venture will be the exclusive transportation and export service provider to Flinders, subject to final investment decisions required prior to December 2015 by both parties, and Government approvals.
Under the terms of the Alliance Agreement, Flinders will reimburse Rutila and Todd for all operating costs associated with iron ore transportation and port handling, as well as around $20 per tonne of ore handled, and 30% of revenue from Flinders' iron ore sales above $60 per tonne.
In addition, Rutila has reached agreement with Todd Minerals for a $10 million funding package, and the extension of the existing loan facility from Todd to 31 December 2015.
The funding package will require shareholder and other regulatory approval, and comprises a $10 million convertible loan to be drawn down in two $5 million tranches.
Rutila is also farming in to an exploration project in the Fraser Range nickel-copper region, and is capitalised at around $16 million.
TRF Price at posting:
9.7¢ Sentiment: LT Buy Disclosure: Held
