All there is the ASX ann. Trouble is most people don't read the...

All there is the ASX ann. Trouble is most people don't read the 2nd page - no speculation on my part.

Moly Mines Limited (ASX/TSX: MOL) (Company) is pleased to advise that the Company has entered into a mine gate sale agreement for iron ore produced at the Company’s Spinifex Ridge Iron Ore Mine (Transaction) with Mineral Resources Limited (MRL, ASX: MIN). The Transaction is subject to approval of the Company’s shareholders at an extraordinary general meeting to be held in the second half of June 2013.

Under the Transaction, the Company’s wholly owned subsidiary Moly Metals Australia Pty Ltd (MMA) will sell ore from the Spinifex Ridge Iron Ore Mine to MRL at the mine gate. MRL will operate the mine to the end of the mine life. It is intended to assign various MMA operating agreements to MRL, the assignment of some of which are a condition precedent to the Transaction.

The Company will retain all the tenements and its rights in relation to its Molybdenum/Copper Project and may continue or re-commence work programs for that Project.

MRL will pay MMA a purchase price calculated on the basis of an agreed minimum product tonnage. The actual minimum product tonnage will be determined on the basis of the tonnage available under the current mine plan at the time delivery to MRL commences.

Delivery is expected to commence by the end of June at which time about 2.4 million dry metric tonnes (dmt) is estimated to be available under the current mine plan. Based on these estimates the purchase price will total approximately A$38 million. This price is payable in two installments, mostly by an upfront payment and the remainder by a final payment once the economic life of the Spinifex Ridge Iron Ore Mine has been exhausted.

MRL will have the choice of paying for the majority of the iron ore delivered in cash or by issuing MRL shares. The final payment is subject to adjustments to reflect the quantity and quality of iron ore.

MMA’s ongoing contractual and statutory obligations as tenement holder are estimated to be between A$6 and A$7 million for the life of mine. MMA will also pay out redundancy entitlements to its site staff.