IronClad signs offtake agreement with NPI for iron ore project

IronClad Mining has signed an agreement with Hong Kong-based resources industry investment group New Page Investments.

The four year agreement is for transport of 50% of annual iron ore production from Wilcherry Hill project located in Australia.

IronClad executive chairman Ian Finch said the new offtake agreement makes way for increased construction activity at the mine.

"Under the terms of the new agreement, New Page Investments must pay IronClad 95% of the agreed value of iron ore leaving via ship from our Lucky Bay port facility, within 30 days of that ship departing," said Finch.

"It is another most welcome development for IronClad and its shareholders."

Last month, New Page took a $6m share placement in IronClad which is to a 9.02% interest in IronClad.

The share placement is expected to finance start-up works at the Wilcherry Hill site

IronClad is on track for first iron ore production in the March this year and the first shipment of iron ore will be exported to Chinese customers in the June quarter.

Under a comprehensive sales contract and marketing agreement, the first two years of production from first stage of mining has been sold to the Chinese steel mills.

The first year of production involves 1 million tonnes per annum of direct shipping ore for export to Asia, increasing up to 2 million tonnes per in the second year.

The second stage will see an increase in production to 5 million tonnes of iron ore concentrate per annum, reports proactiveinvestors.com.au.

Wilcherry Hill is a joint venture operation between IronClad holding 80% stake and its associated company, Trafford Resources holding the remaining interest.