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【Ferro-alloys.com】：Tulla Resources’ subsidiaries Central Norseman Gold Corporation (CNGC) and Pangolin Resources have entered into an offtake and funding agreement with Australia-based Constance Iron, for its Norseman iron-ore project, in Australia.

This follows a heads of agreement signed between the parties in January.

The deal is still reliant on the successful listing – and raising of £56-million – of Constance on the LSE by September 30.

CNGC and Pangolin retain ownership of 100% of the rights to the iron-ore and associated iron products from the Norseman project, pursuant to a mineral rights deed entered into between CNGC, Pangolin and Australian gold miner Pantoro South in July 2019.

Tulla executive chairperson Kevin Maloney deems the transaction important for the company, explaining that while Tulla’s focus is on the restart of gold operations at Norseman, the agreement with Constance is a key part of the company’s strategic plan to diversity its asset base and unlock value for shareholders.

Some key terms of the offtake and funding agreement include Constance purchasing the first 400-million drilled metric tonnes of iron-ore mined, comprising five tranches, from the project.

Upon Constance being listed on the LSE, it will repay the Tulla parties A$20-million in cash, and either issue £7.5-million worth of equity shares to the Tulla parties at the initial public offering issue price, or increase the cash consideration by £7.5-million.

Constance is obliged to fund the first A$42-million of costs incurred for exploration, development, mining and treatment of product within the first four years. 

• [Editor:Alakay]