Toronto, Ontario-based Moly Mines Limited announced Wednesday that it has executed an iron ore sales agreement in Chengdu, China, for 100 percent of its production from the Spinifex Ridge Iron Ore Project (Sales Agreement) in Western Australia with Hanlong Metals Limited (Hanlong Metals). The sales agreement is the final key contract to be settled for the iron ore project.
Dr. Derek Fisher, the CEO/Managing Director of Moly Mines commented that “this is an excellent outcome for the company as the price will be indexed to spot market prices.”
A few key terms of the sales agreement include: Hanlong Metals will provide a letter of credit for 95 percent of each shipment's estimated value, 14 days prior to the estimated arrival time of a vessel at Utah Point for loading, and Hanlong Metals will receive a 4 percent marketing fee from Moly Mines, based on the free on board (FOB) price achieved for each shipment.
Moly Mines is planning its first shipment of iron ore within the first two weeks of December of this year. Mining operations have already commenced at Spinifex Ridge with waste stripping underway. The first ore production is due to begin later this month, timed to coincide with commissioning of the onsite mobile crusher and screening plant. Processed ore will be trucked from site to the Utah Point export facility at Port Hedland commencing early November.