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Alien grants Anglo American exclusive offtake rights

Alien Metals has enticed Anglo American to consider project funding and offtake arrangements for the Hancock iron ore project.

UK-based exploration company Alien Metals – through its wholly-owned subsidiary Iron Ore Company of Australia (IOCA) – has enticed Anglo American to consider project funding and offtake arrangements for the Hancock iron ore project located in the Pilbara, Western Australia.

IOCA has granted Anglo American an exclusive right to negotiate and agree terms for up to $US15 million in funding and 100 per cent of offtake from the Hancock Project, including:

•$US10 million in an advance payment facility

• 100 per cent offtake for sinter fines and lump from the Hancock project

• Offtake terms to include vessel prepayments for up to $US5m for the first 12 months

• Anglo American to receive an agreed royalty for 24 months

Alien Metals chief executive officer Bill Brodie Good said the company was pleased to have signed the mandate letter with a leading, global mining company of Anglo American’s stature.

“The letter provides a pathway to negotiate and agree the potential development debt funding, and a 100 per cent offtake solution. It supports our near-term production aspirations and, unlike conventional debt finance, the potential bespoke funding with offtake provides alignment between the parties for the pursuit of scale across multiple assets with a world class counterparty,” he said.

The Board is continuing to assess development plans at Hancock which may reduce the initial capex requirement outlined in the October 2021 scoping study.

Anglo American is the world’s largest producer of platinum, with around 40 per cent of world output, as well as being a major producer of diamonds, copper, nickel, iron ore and steelmaking coal.

 

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).
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