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Korab Resources Signs MOU With Chinese Steel Industry Interests
Dec. 08, 2015 03:41PM PST
Magnesium InvestingKorab Resources (ASX:KOR) announced it has secured a memorandum of understanding (MOU) with a representative of the Chinese Steel Industry regarding the company’s Winchester magnesium carbonate project in Australia. The memorandum covers potential avenues for funding the project, in addition to potential offtake agreements and the listing of Korab’s subsidiary, AusMag, on the Shanghai or Hong Kong stock exchange.
Korab Resources (ASX:KOR) announced it has secured a memorandum of understanding (MOU) with a representative of the Chinese Steel Industry regarding the company’s Winchester magnesium carbonate project in Australia. The memorandum covers potential avenues for funding the project, in addition to potential offtake agreements and the listing of Korab’s subsidiary, AusMag, on the Shanghai or Hong Kong stock exchange.
As quoted in the press release:
It is envisaged that funding for the development of [the] Winchester mine will be provided as seed capital injection into AusMag by parties associated with Chinese steel producers. The investment and the listing are likely to be subject to shareholder approval.
The Company expects that the contracts will be advanced within 2 months. This term may be extended by mutual consent.