South American Iron & Steel Corporation Limited (SAY) has signed an agreement with Prideful Asset Management Limited (PAM) to further progress the development of our Putú concessions.
Under the agreement, PAM will:
- Provide all necessary mining equipment including sand dredging equipment, dredging equipment, dry ore magnetic separator, sand crusher and sand washing equipment.
- Directly, or through a nominee, operate and mine iron sands for SAIS in the Putú concessions including production management, equipment maintenance, and technical support.
- Provide finance for all the costs and expenses in relation to the production of iron sands concentrates.
- Solely bear the cost of all plant, machinery and mining equipment.
- Share equally with SAIS the profits from the sale and production of iron sands concentrates.
Both parties will jointly develop the Putú concessions with a plan to produce two million tonnes of iron sands concentrates within two years; and five million tonnes of iron sands concentrates within four years from commencement of the signed agreement.
Preparations are underway to ship plant, machinery and mining equipment in 12 containers and they are expected to arrive in our Putú concessions in late January 2013.