THE BOURSE WHISPERER: Western Desert Resources (ASX: WDR) has reached an agreement with Noble Resources International that will result in the latter becoming the off-take partner for Western Desert’s three million tonnes per annum Roper Bar Direct Shipping Ore (DSO) project.
Noble is a global commodity trader, listed upon the Singapore stock exchange.
Under the agreement Noble will purchase all product produced for up to five years from initial shipment which is expected in fourth quarter 2013.
In addition to purchasing all product, Noble has also agreed to provide Western Desert with a revolving credit facility for working capital.
Roper Bar iron ore province location plan. Source: Company announcement
“WDR has received dozens of enquiries for off take over the last two years,” Western Desert Resources managing director Norm Gardner said in the company’s announcement to the Australian Securities Exchange.
“After a competitive process WDR selected Noble.
“Apart from having a commercially compelling offer for WDR we have a strong belief that the people we have been dealing with at Noble are like minded and share our vision for the Roper Bar project.
“WDR remains on schedule and on budget to deliver our first shipment of product under the off-take agreement.”
Western Desert said development works at the Roper Bar iron ore project continue as scheduled, with first export of DSO expected in fourth quarter 2013.