al80 offtake agreement cancelled

ASX Release – 14 March 2012
? Supply contract with Impex Minerals Pty Ltd cancelled due
to non-performance
? Letter of Intent signed with Australia Bandfield Group for
the supply of AL80 produced in Australia.
MHM Metals Limited (ASX:MHM) has cancelled an exclusive supply
contract with Impex Minerals Pty Ltd for the offtake of AL80,
MHM’s aluminium oxide product that is produced from salt cake
recycling operations.
The contract has been cancelled following repeated nonperformance by Impex of key conditions precedent to the contract
and repeated failure to deliver on timeframes. On 23 February
MHM announced that the first anticipated shipment date for AL80
would be 5 March 2012. This date was provided following written
and verbal assurance by Impex that shipping would commence on
this date. Due to non-compliance by Impex, MHM has now cancelled
the contract with Impex.
MHM has immediately proceeded with an alternative buyer of MHM’s
AL80 product.
MHM has signed a Letter of Intent with Australia Bandfield Group
for the supply of all AL80 produced in Australia.
Established in 1994, Bandfield has exposure to a range of
businesses including ship broking, export and sales of mineral
and agricultural products and advisory services in mining, port
infrastructure and investment. The scope of its business also
includes advice and evaluation for Australian or Asian companies
seeking joint venture investments and providing shipping
solutions for Australian companies seeking to reach Asian
markets.
Preparations for the first shipment have already begun and
Bandfield has advised that it will be delivering shipping
containers to site within 10 days.
The delay in shipment of AL80 is presently not impacting ongoing
operations at MHM’s Geelong salt cake recycling facility.




I'm not sure about anyone else, but this sounds like a positive thing to me. Management went to a better party when Impex started dragging their heels.

Thoughts?