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Shaw River Manganese should trade higher again today after signing a purchase contract with Noble Resources International for the sale of up to 30,000 tonnes of manganese ore from its flagship Otjozondu Manganese Project in Namibia.

Shares in the company have soared recently, rising almost 7-fold since July. Shares touched an intraday high of $0.027 today, from just $0.004 in July.

Shaw is in the final stages of completing an infill and grade control program at the Labusrus and Bosrand areas at Otjozondu and anticipates commencing mining of bulk samples totalling 100,000 tonnes early in November this year.

The sales contract is structured for fixed pricing at different product specifications which enables Shaw to sell various manganese ores products with more revenue certainty within a flexible time frame.

Under the terms of the agreement the company can, at its election, sell up to 30,000 tonnes to Noble before 31 March 2015.

This agreement with Noble places the Shaw River Group in a strong position to progress the Otjo Project and also provides a unique opportunity to test its logistics chain and mine planning going forward.

In August, Shaw obtained new convertible loan debt funding from Bryve Resources.

Bryve will acquire 9.69% of Shaw River equity held by major shareholder Atlas Iron (ASX:AGO) with an option to acquire the remaining 43.76% of Shaw River shares currently held by Atlas at a price of A$0.0035 per share.

Shaw is valued at around $22 million.

• [Editor:Sophie]