Hi HoshSection 12.7 from the prospectus pasted in below shows...

Hi Hosh

Section 12.7 from the prospectus pasted in below shows the offtake agreement conditions:

Off-take Agreement
On 8 November 2009, the Company, through I-S Iron Ore, entered into an
agreement with Jiangyin Huaxi Steel Co. Limited (JHS Co), a company registered
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in China (Off-take Agreement) whereby JSH Co has agreed to buy from I-S Iron
Ore iron ore lumps and fines of Indian origin, free of board (FOB) on the following
terms and conditions:
(a) (Delivery Quantity): a shipment of 200,000 metric tonnes (+/- 5% at I-S
Iron Ore?s option) of Fe 59 grade with at least 35% (70,000MT) as lumps
with the whole quantity being delivered on FOB basis no later than 30
May 2010;
(b) (Guarantee Specifications): JSH Co is guaranteed the following
chemical composition (on a dry basis, percentage by weight):
(i) Fe59% - 58% minimum guaranteed;
(ii) SiO2 ? 7% maximum guaranteed;
(iii) A12O3 ? 3.5% maximum guaranteed;
(iv) P ? 0.09% maximum guaranteed; and
(v) S ? 0.08% maximum guaranteed;
(c) (Price): the price paid shall be US$55/DMT FOB any east coast port, India
based on Fe 59/58% cut-off whereby:
(i) it shall be increased by US$0.50/DMT for each 1% Fe above 59% per
fractions pro rata;
(ii) it shall be decreased by US$0.50/DMT for each 1% FE below 59%
fractions pro rata; and
(iii) JHS Co has the rights to reject the material if Fe is below 58%;
(d) (Price Adjustment): the Off-take Agreement makes stipulations as to
how the Price shall be adjusted based on alterations to the guaranteed
limits supplied;
(e) (Performance Bond Guarantee): if NSL India cannot perform the
contract and/or cannot supply cargoes to JHS Co of the delivery
quantity, LHS is entitled to draw payment against a performance bond
of US$110,000 as a non-delivery penalty, which shall be valid until the
issuance of a bill of lading for the final shipment of ore that achieves the
full contract amount.
The Company has also agreed to pay a commission agent US$3 per tonne of
ore sold under the above Off-Take Agreement

OT