12/06/2009 - 10:50

Jabiru steps up in offtake negotiations

12/06/2009 - 10:50

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Miner Jabiru Metals will be able to directly negotiate offtake contracts and has agreed to buy a partly constructed storage shed at the Geraldton Port following a restructure to an OZ Minerals agreement.

Miner Jabiru Metals will be able to directly negotiate offtake contracts and has agreed to buy a partly constructed storage shed at the Geraldton Port following a restructure to an OZ Minerals agreement.

More to come....

 

 

The announcement is below:

 


Jabiru Metals Ltd (Jabiru or the Company) is pleased to announce that it has restructured the OZ Minerals Golden Grove Pty Ltd (OZ Minerals) concentrate sales agreements into a marketing agency agreement.

The new arrangements establish OZ Minerals as Jabiru's concentrate marketing agent, which will retain, for both companies, the marketing leverage achieved by jointly marketing and selling Golden Grove and Jaguar concentrates, together with the shipping port and handling cost advantages currently achieved. In addition, it will allow Jabiru to be more directly involved in the sales, marketing and shipping of the Jaguar concentrate products and reduces the potential trade credit risk of supplying to a single customer.

The new arrangements put Jabiru in the position of entering into the offtake contracts directly and will, if desired, allow Jabiru to enter into concentrate sales arrangements with a range of customers.

In addition, the negotiations have included the purchase of the partly constructed Lease 27 concentrate storage shed at the Geraldton Port. Obtaining this lease will enable Jabiru to complete the construction of the concentrate storage shed at the port, giving Jabiru long term secured access to the port and overseas shipping.

Whilst the parties have reached agreement on the terms of the renegotiation of the concentrate sale arrangements and the purchase of the lease, the transactions are still conditional upon final approvals including those by the Geraldton Port Authority.

These new concentrate marketing terms and the purchase of the Geraldton Port facilities, will in the longer term provide Jabiru with more secure control and authority over the marketing of the Jaguar concentrates.

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