Pursuant to the arrangements the subject of the Heads of Agreement, Koch will purchase up to 400 million tonnes of JORC compliant iron ore with an initial commitment to purchase 200 million tones and then in 50 million tonne tranches with an option thereafter to purchase the life of mine iron ore. Koch will provide A$42 million to fund the exploration, development and mining of the iron ore over an initial 3 year period and thereafter will fund 65% of all iron ore project costs.
Kevin Maloney, Executive Chairman Tulla Resources, said:
“We are pleased to have entered into the Heads of Agreement with Koch. This arrangement is consistent with the Company’s strategy of diversifying its asset portfolio and extracting value for the Company’s shareholders.”
Adam Giles, Chairman (Koch), said:
“On behalf of myself and the Koch board, we are pleased to enter into the arrangement with Tulla Resources and look forward to a long and fruitful relationship.”