As part of the Company’s ongoing focus of enabling further development of its assets and operations, the Board of Admiralty Resources NL (ADY) is delighted to announce that Admiralty has entered into a share sale agreement to sell the whole of Admiralty’s interests in its wholly-owned controlled entity Sociedad Contractual Minera Vallenar Iron Company to Icarus Derivatives Ltd.
VIC’s main asset is a series of mining tenements in the Harper geological district. The Harper geological district is South of the town of Vallenar in the Third Region of Chile. Icarus is part of an international investment group specialising in opportunities in the resource sector globally. The Agreement provides for the division of VIC’s tenements in Chile into a “Northern Region” and a “Southern Region” of approximately equal size. VIC will retain the Northern Region and Admiralty (through a wholly owned subsidiary) will retain a direct interest in the Southern region.
The sale consideration has been structured in two parts, the first being guaranteed payments of US$4 million and the second being a royalty agreement on production. Icarus has agreed to procure access to the port concession at Punta Alcalde to Admiralty’s subsidiary for export of its own product on reasonable commercial terms when constructed. Icarus has agreed to procure VIC to enter into a put and call supply agreement with Admiralty’s subsidiary, whereby final product produced by that subsidiary in the future can be sold to VIC.
Icarus’ representative, Dr Andrew Walker, notes “this is an excellent deal for Admiralty’s shareholders and a good deal for Icarus. We are well resourced and intend to immediately roll out and scale up production of iron ore fines for sale to our clients. We fully expect to deliver up to US$50 million to Admiralty as a combination of guaranteed payments and ongoing royalties over the next five years as our mining operations expand and the port is constructed. In addition, Admiralty will receive an ongoing royalty for the life of the mine”.
www.ady.com.au
http://www.traderdealer.com.au/Fundamentals/ady
