OFFTAKE AGREEMENT
(Thomson Reuters ONE) -
London Mining today announces that it has signed an offtake agreement with the
trading house Glencore International AG ("Glencore"). The offtake will cover
9.5m WMT production from Phase 1a of the Company's Marampa project. The five
year agreement, which includes a pre-payment facility for up to USD27m, 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.
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."
The Company's Website can be found at:www.londonmining.co.uk
For more information, please contact:
London Mining Plc
Graeme Hossie, Chief Executive Officer +44 207 201 5000
Rachel Rhodes, Chief Financial Officer
Thomas Credland, Head of Investor Relations
Liberum Capital (Nominated Advisor/Broker)
Clayton Bush/Christopher Kololian +44 203 100 2000
Crux Kommunikasjon AS
Charlotte Knudsen +47 97 56 1959
Brunswick Group LLP
Carole Cable/ Daniel Thöle +44 207 404 5959
About London Mining
London Mining is focused on identifying, developing and operating mines to
become a mid-tier supplier to the global steel industry. Its five assets in
Sierra Leone, Colombia, Greenland, Saudi Arabia and China all have deliverable
production with potential for expansion. The Company listed on the Oslo Axess on
9 October 2007 and on AIM in London on 6 November 2009. It trades under the
symbols LOND.L and LOND.NO (Reuters) and LOND LN and LOND NO (Bloomberg).
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: London Mining Plc via Thomson Reuters ONE
[HUG#1482460]
Unternehmensinformation / Kurzprofil:
Datum: 26.01.2011 - 08:00 Uhr
Sprache: Deutsch
News-ID 50735
Anzahl Zeichen: 3608
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 264 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"OFFTAKE AGREEMENT"
steht unter der journalistisch-redaktionellen Verantwortung von
London Mining Plc (Nachricht senden)
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