Admiralty Resources (ASX:ADY) has established key commercial terms of an agreement with to negotiate the Final Term Sheet to progress the Mariposa iron ore project with Hainan, coinciding with its debut on the Australian stock exchange today.
Hainan will provide all capital equipment and undertake all development activities required to commence production at a rate of 500,000 t/pa in 2024 (Phase 1) and to commence construction on a 2,000,000 t/pa capacity production plant in 2025 (Phase 2).
Admiralty Resources says it will retain 20% of its Chilean Subsidiary’s net profit after tax, and Hainan will receive the balance 80% as consideration for providing the capital and undertaking development required for Phase 1.
The Parties have also agreed that if Admiralty decides to invest funds into the development of Phase 2, then the terms of the Phase 2 project will be negotiated at that time.