Magnis Resources Signs MOU with POSCO E&C

 Magnis Resources (ASX:MNS) announced that they have signed an MOU with South Korean industry leader POSCO E&C outlining the basis for co-operation on the procurement of funding and construction of the Nachu Graphite Project in Tanzania.
As quoted in the press release:

Key roles and responsibilities outlined in the MOU are as follows:

1. POSCO E&C is mandated for arranging senior loans through its associations with financial institutions.
2. Magnis is responsible for arranging subordinate debt and equity and the overall coordination of Project funding.
3. Magnis to update resource/reserve definition and a feasibility study to the satisfaction of lenders.
4. POSCO E&C to develop a fixed price lump sum for Project execution by 2 nd quarter 2016.
5. Magnis, with support from POSC

Magnis Resources Chairman, Frank Poullas, stated:

Today marks another milestone for Magnis. Having POSCO E&C onboard as our lead arranger and EPC consultant really highlights the quality of our project. POSCO E&C has demonstrated time and again that they can bring projects into production on-time with the highest standards. I would like to thank POSCO E&C for its significant commitment and effort that has culminated in the signing of this MOU. We have been impressed with our dealings with POSCO E&C over the past 3 months and we certainly welcome our partnership and the confidence it shares in the Nachu Graphite Project.
The financial and sovereign stability afforded by the recent finalisation of the Mineral Development Agreement along with the recent capital raising has been the catalyst to the funding process. The team at Magnis is focused on ensuring commencement of production by the first quarter of 2017.

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