Arrangement set to deliver near-term revenue and cash-flow during the ramp-up phase of the main Pilgangoora Stage 1 Project, with DSO sales to Atlas scheduled to commence from March 2018
• Mine Gate Sale Agreement finalised with Pilbara iron ore miner Atlas Iron (ASX: AGO [US: ATLGF) encompasses proposed sale of a minimum 1.0Mt of run-of-mine lithium-tantalum ore from the Pilgangoora Project. • Atlas will utilise its existing processing infrastructure and logistics chain in the Pilbara to crush the ROM material and supply it as Direct Shipping Ore (DSO) to the final customer. • MoU executed with Sinosteel Australia Pty Ltd contemplates offtake for up to 1.5Mt under an agreement to be entered into between Atlas and Sinosteel. • Mine gate sale pricing is underpinned by an attractive US$ fixed base price per wet metric tonne to Pilbara, subject to adjustments in respect of material specifications and final shipping costs. • A USD$3M prepayment facility (“Mine Gate Commitment”) is a pre-condition to the commencement of DSO sales to Atlas. • The innovative arrangement, which is targeted to commence in March 2018, will allow Pilbara to generate upfront revenue and operating cash-flow while it commences the commissioning and ramp-up of the Pilgangoora Stage 1 Project in Q2 next year, with concentrate exports to follow shortly thereafter.
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