PERTH (miningweekly.com) – Junior Korab Resources' wholly owned subsidiary Geolsec Phosphate Operations has entered into a heads of agreement (HoA) for a 250 000 t phosphate rock offtake agreement with DPA Oceania, as well as for a possible A$4-million investment.
The offtake covered the sale of 250 000 t of phosphate rock over a period of five years, on commercially attractive terms. The offtake agreement could be extended for further periods.
DPA Oceania has also expressed interest in acquiring no more than a 50% equity interest in Geolsec for A$4-million in cash and a provision of assistance with the expansion and further development of the quarry, and the management of its operations.
The parties would now negotiate the detailed terms of the equity acquisition and provisions of assistance.
Korab noted that, while Geolsec had committed to an offtake agreement, Korab itself was under no obligation to sell an equity stake in its subsidiary, giving the company the flexibility to consider potential transactions with other parties.
Korab was in discussions with other parties regarding offtakes, distribution agreements and potential equity transactions.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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