24th Mar 2014 09:40
LONDON (Alliance News) - Ormonde Mining PLC Monday said it has entered into a binding tungsten offtake agreement, from its Barruecopardo project in Spain, with Noble Resources International Pte.
The tungsten mining exploration and development company said its wholly owned subsidiary SaloroSLU, which holds the rights to the Barruecopardo Tungsten Project in Salamanca, entered the deal for Noble to purchase 100% of the tungsten concentrate produced from the open pit mine on site.
The company said the deal is for its initial five years of operation and based upon anticipated tungsten production from the open pit and if the current tungsten price of roughly USD370 per metric tonne unit was applied, the deal would equate to revenues in excess of USD350 million over the five-year period.
Ormonde said that at the end of the period it will seek to extend the agreement or otherwise enter into an arrangement whereby Noble provides marketing agency services to Saloro for concentrate sales.
Noble Resources is a subsidiary of Noble Group Ltd, a major commodities supply-chain manager of energy products, metals, minerals & ores and agricultural products with total revenues of USD98 billion in 2013.
Ormonde Mining shares were up 8.2% to 5.95 pence, putting it in the top-ten AIM risers in early trading Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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