- Tulla Resources (TUL) signs a heads of agreement with Koch Metals for an iron ore off-take arrangement and funding for its Norseman Project
- Under the agreement, Koch will buy up to 400 million tonnes of iron ore and fund $42 million to exploration, development and mining of the iron ore for over three years
- However, for the deal to be final, certain conditions need to be met, such as Koch raising capital and being admitted to the London Stock Exchange
- On the market today, Tulla is up 7.56 per cent and trading at 64 cents per share
Tulla Resources (TUL) has signed a heads of agreement with Koch Metals for an ion ore off-take arrangement and funding for its Norseman Project.
The company’s subsidiaries, Central Norseman Gold Corporation (CNGC) and Pangolin Resources, own the rights to the iron ore and associated iron products at Norseman in accordance to the mineral rights deed signed in 2019.
Under the agreement, Koch will buy up to 400 million tonnes of iron ore, with an initial purchase of 200 million tonnes and then in 50 million tonne tranches, with an option thereafter thereafter to purchase iron ore for the life of the mine.
Additionally, Koch will provide $42 million to fund the exploration, development and mining of the iron ore over an initial three years and following this will fund 65 per cent of all iron ore project costs.
However, the agreement is subject to a number of conditions, such as Koch raising capital and being admitted to the London Stock Exchange, due diligence, and the receipt of all necessary approvals.
Koch is a private Australian iron ore company with an interest in the development and production of iron ore assets and the sale of iron ore to third parties.
“We are pleased to have entered into the heads of agreement with Koch,” Tulla’s Executive Chairman Kevin Maloney said.
“This arrangement is consistent with the company’s strategy of diversifying its asset portfolio and extracting value for the company’s shareholders.”
On the market today, Tulla was up 7.56 per cent and is trading at 64 cents per share at 12:48 pm AEDT.