Following the news release made by the Admiralty Resources NL (ADY) on 21 September 2009, the Board of Directors of Admiralty advise that SCM Vallenar Iron Company has successfully signed a contract with a well known Chilean company for the sale of the plant and equipment located at the old Japonesa mine site for a total amount of US$1,666,000 (including VAT).
This equipment is not considered viable for use in larger scale mining operations and is therefore surplus to requirements. The contract was signed by both parties on 25th February 2010 and the terms of the contract stipulate that the purchaser will make an initial down payment of US$714,000 (including VAT) 15 days after the date of the contract, that is on 10th March 2010, and the balance payment for US$952,000 (including VAT) is scheduled 30 days after the date of the contract, that is 25th March 2010.
The funds to be received will improve VIC’s cash flow and fund the day-to-day operating expenses. VIC and the Board of Admiralty expect to be able in to be in a position to provide a further update in relation to the sale of the waste and low grade reject stockpiles prior to the end of the current quarter.