Kent Exploration sells Flagstaff barite to MMIL
2008-11-18 09:37 ET - News Release
Mr. Graeme O'Neill reports
KENT ENTERS INTO BARITE SALES AGREEMENT
Kent Exploration Inc. has entered into a barite sales agreement with Matovitch Mining Industries (MMIL), whereby MMIL will purchase approximately 20,000 tons per year of 4.1 specific gravity barite from the company's Flagstaff property.
The price to be paid is that published by the United States Geological Survey in its annually updated mineral commodity summary -- currently quoted at $40.00 (U.S.) per ton. The company projects a gross annual revenue of approximately $800,000 (U.S.) from this agreement.
The initial term of the agreement is for 10 years, renewable for an additional 10 years on substantially the same terms. MMIL paid $10,000 (U.S.) upon signing and must pay $30,000 (U.S.) into escrow, of which $10,000 (U.S.) is paid out upon mine plan approval, and the balance paid out on issuance of the mining permit.
MMIL is required to make annual minimum payments against barite purchases as follows: $35,000 (U.S.) on the first anniversary of the agreement, $40,000 (U.S.) on the second anniversary, $45,000 (U.S.) on the third anniversary, and $50,000 (U.S.) on the fourth and subsequent anniversaries.
