Joint Ventureheads of Agreement: NSL and Vijay Group
(firmenpresse) - Joint Ventureheads of Agreement: NSL and Vijay Group
25 January 2013
HIGHLIGHTS
JV Heads of Agreement Executed
Experienced Indian mining industry JV partner
Significant cash injection into NSL’s existing Indian business
Clear pathway for rapid expansion
The Directors of NSL Consolidated Ltd (NSL or Company) are pleased to announcethe Company has executed a Heads of Agreement (HOA)to establish a Joint Venture (JV) company between NSL and prominent Andhra Pradesh-based,Vijay Group. The agreement includes both partners focusing on expanding NSL’s currentiron ore operations and other sites - primarily throughout Andhra Pradesh.
The HOA outlines the JVterms between NSL Mining Resources Pvt Ltd (NSLMRI) – a wholly owned subsidiary of NSLand owner/operator of NSL’s Indian assets; and Vijay Mining Pvt Ltd (VMPL) – a wholly owned subsidiary of the larger Vijay Group. Key terms of the HOAare below:
•VMPL inject INR 700,000,000 (approx US$13.1M, based on a 12 month average exchange rate) into NSLMRI.
•VMPL earn a 40% interest in NSLMRI.
For further information please refer to Appendix.
The execution of this HOAreflects the current high level of interest and negotiations with major Indian and international companies looking to participate in NSL’s early mover status in India’s iron ore market. This level of interest is a direct result of NSL’s unique position and achievements to date.
In promising developments for NSL, the Indian Ministry of Environment and Forest granted environmental approval for the Company’s planned Phase 2 Wet Beneficiation Plant at Kurnool to expand the current Phase 1 iron ore dry processing operations, and the AP14 Mining Lease was approved by the Andhra Pradesh State Government.
NSL Managing Director, Mr Cedric Goode:
“The signing of this HOA with Vijay Group reflects the sector’s recognition of the success and calibre of our approvals and project development pathways in India.”
“It also acknowledgesNSL’s unique position and achievements in being a small player but with substantial growth upside in a commodity with its own strong growth fundamentals.”
“We are confident of moving the HOA to more secure commercial outcomes as both parties recognise that they bring complimentary skills and assets to the JV and are desirous to progress this to final, binding agreements. This and our current level of negotiations with majors will further derisk NSL’s iron ore mining operations and underpin real opportunities for more rapid expansion.”
“The Vijay Group has a history of rapid business growth, coupled with local expertise specialising in mining operations and mining equipment related businesses. The Company looks forward to working closely with Vijay Group as we jointly strengthen our positions in the Indian mining industry.”
CONTACT:
Cedric GoodeKevin Skinner
NSL ConsolidatedField Public Relations
0400 408 477(08) 8234 9555 / 0414 822 631
Appendix One: Key Terms of HOA
•VMPL inject INR 700,000,000 (approx US$13.1M, based on a 12 month average exchange rate) into NSLMRI.
•VMPL earn a 40% interest in NSLMRI, in progressive tranche payments over 180 days.
•VMPL will also be issued a final 10% free equity in the JV Company if it delivers two identified operating iron mines to the JV on terms acceptable to NSL.
•The JVwill focus on developing iron ore assets with profit sharing commensurate to the percentage equity held by each party. This focus will include thedevelopment and expansion of existing mining assets and pursuing additional avenues for growth including future mine acquisitions.
•NSL and Vijay are targeting the JV to be operating at an estimated 1.5 million tonnes per annum of saleable iron ore within two years, with potential to increase this target further in the next 4-5 years.
•NSL will be the Operator for the joint venture.
•Until such time that the subsequent Joint Venture Operator and Shareholder Agreements are executed, in conjunction with the receipt by NSLMRI of the Tranche One payment are satisfied or waived, the HOA will be non-exclusive.
Leseranfragen:
NSL Consolidated Ltd.
21 Teddington Road,
Burswood, Western Australia,
Australia, 6019
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Datum: 25.01.2013 - 13:37 Uhr
Sprache: Deutsch
News-ID 223061
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Town:
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Kategorie:
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