pre-selling the ore sounds good. Has anyone seen any other companies do this before? What sort of a discount is typical for the buyer? ...............................................
November 2009 BC Iron yesterday announced a $53.8 million off-take agreement with a Hong Kong-based industrial and trading company for its Nullagine Joint Venture (NJV) iron ore project with Fortescue Metals.
Under the terms of the agreement, the project will deliver 20 million tonnes of iron ore to the off-take partner over the eight-and-a-half years.
The $53.8 million worth of pre-payments will go towards having the project operational by late-2010.
The first $16 million tranche will be drawn down in December this year.
As per the terms of the agreement, iron ore pricing will be related to the annual benchmark reference price.
