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NSL (ASX:NSL) and China Metallurgical Agreed on Long Term Cooperation
Sydney, July 15, 2010 AEST (ABN Newswire) - NSL Consolidated Ltd (
ASX:NSL) has executed a long term cooperation Heads of Agreement with China Metallurgical Mining Corporation (CMMC), under which CMMC will receive a 10 per cent equity stake in Kuja and Mangal and discounted off-take, with a floor price, from Kuja and Mangal, in return for a USD10 million investment, and the commitment to provide up to US$100 million in funding for other projects.
CMMC will provide US$100 million by way of joint venture, to acquire and develop additional projects with a view to delivering NSL a JORC resource base of 100 million tonnes and a targeted production rate of 3 million tonnes of ore per annum.
The Chinese company will also provide testing, planning, design, fabrication, shipping, construction, commissioning and continued onsite technical expertise for a beneficiation plant for Kuja and Mangal with capability of 500,000mt/year output capacity.
CMMC and NSL also agreed to investigate the establishment of Indian based domestic value addition and downstream processing opportunities as the resource base and production rates build.
Execution of formal agreements is expected to be completed in the fourth quarter of this year.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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