Malaysian Iron Ore Producer Explores Exclusive 10 Year Arrangement with Britannia Mining
Britannia Mining, Inc. (OTC Pink: BMIN) announces that it has executed a Memorandum of Understanding (MOU) with an iron ore producer in Malaysia, and is positioning to finalize iron ore distribution contracts of over $60 Million. Under the terms of the contract, Elit Mestika Mining will make available to Britannia 600,000 metric tons (Mt) of iron ore each year.
“My trip to Malaysia was extremely successful,” stated Kenneth Roberts, CEO of Britannia Mining. “We were able to build a number of key strategic relationships and secure ample product for our iron ore supply chain. We are now finalizing a definitive agreement for 50,000 Mt per month. As the MOU reflects, this supply will be ongoing and the resulting commodity transactions will provide the company with a monthly revenue source. Once the price is finalized, we will be well on the way to closing up financials.”
The MOU calls for the parties to complete the commercial aspects in order to position the definitive agreements. Once complete, the transaction will infuse product into Britannia’s iron ore supply chain with as much as 6,000,000 metric tons, over the course of the agreement. The MOU indicates the term will be five (5) years with an option to extend by five (5) years. Britannia will also be provided with road transportation and port loading facilities.
With investment dollars proposed by REM Capital, management is building its financial framework, allowing the company to quickly transition from MOU to a Definitive Supply Contract within Q2. Anticipated revenues from immediate cash producing projects such as this, far exceed the Company’s initial conservative projections.
Mr. Roberts concluded, “While we will remain diligent in our exploration of both Malawi and the Yukon, ramping up Britannia’s natural resource supply chain greatly strengthens and grows the company’s financial resources. It is important for us to generate revenues both in the immediate and near term to ensure both continuous growth and efficient exploration.”
- 18 Mar, 2014
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