re: Ann: Territory Secures Long-Term Sales Co... Article online...

re: Ann: Territory Secures Long-Term Sales Co... Article online in "The Western Australian"

http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=132015

Territory signs ore sales agreements
24th March 2009, 9:00 WST

Territory Resources has signed long-term sales agreements with three Chinese steel producers for iron ore production from its Frances Creek mine in the Northern Territory.

The agreements cover two million tonnes of production of lump and fines ore a year from Frances Creek for the next three years with annual pricing to be benchmarked each year against major annual long term contracts for WA iron ore.

Once the parties agree on a price, Territory will enter binding yearly contracts with the steel mills for the sale of its iron ore.

Territory said it would continue to sell at spot iron ore prices until the final binding contracts were completed.

The company said it was on track to ramp-up production at Frances Creek to two million tonnes a year during 2009, with operational enhancements over the past 12 months.

“The company has a strong focus on achieving further optimisations during 2009 including a further reduction in operating costs,” Territory said in a statement.

Territory shares were up 2.5 cents, or 20.83 per cent, to 14.5 cents at the close of trade after hitting an intraday peak of 16 cents.

STUART McKINNON