games continue, page-78

No mention of China exclusivity here, or in the ASX release in my earlier post. From the 2012 AGM memorandum.


Sales and Marketing Agreement
On or about 17 September 2012, in consideration for the provision of a $3 million loan by WEG to Pluton on 1 August 2012 (Loan), Pluton and WEG entered into a sales and marketing agreement in respect of ore produced from the Cockatoo Island Project (Sales and Marketing
Agreement), under which Pluton has agreed to appoint WEG, and WEG has agreed to accept such appointment, as Pluton’s sole and exclusive agent for the marketing and sales of its
share (which shall be in proportion to its JV Interest) of ore produced from the Cockatoo Island Project (Product) (Marketing Rights), including the provision of the following services:

(i) engaging customers to execute sale agreements on the basis of the best sale price for the Products, taking into account domestic and international supply and demand and
long and short term pricing;

(ii) developing and maintaining relationships with existing and potential customers;

(iii) making offers to sell and soliciting offers to buy the Product;

(iv) negotiating and concluding letters of intent and iron ore sales agreements with customers for the sale of the Product, whether on the basis of long term supply
contracts, spot market sales or otherwise;

(v) undertaking such management and logistical services on behalf of the joint venturers as are necessary for the delivery of the Product to customers;

(vi) preparing and maintaining proper books, records and accounts in respect of marketing and sales activities; and

(vii) performing such other tasks and take such other actions as are necessary in relation to the operation and administration of sales agreements and ensure compliance with sales agreements.

During the course of undertaking the above services, WEG has agreed to deliver the Product together with WEG’s share of Product and ensure that the sale price obtained by WEG as agent for Pluton is the same as that obtained in respect of the sale of WEG’s share of Product.

In consideration for the provision of the above marketing services by WEG, Pluton has agreed that WEG will be entitled to a commission of 3% of the gross sale proceeds obtained from the sale of the Product (excluding GST) (Marketing Fee).

The Marketing Rights will continue until the Sales and Marketing Agreement is terminated either at the election of WEG (with at least 180 days notice to Pluton) or by Pluton following a material breach by WEG of the Sales and Marketing Agreement.

The Sales and Marketing Agreement provides for the repayment of the Loan out of Pluton’s share of the proceeds of the sale of Product, after certain deductions.