Pelican Resources announced the execution of a Memorandum of Agreement between BHP Billiton and Sibuyan Nickel Properties Development Corporation, the holder of the Romblon Nickel Project in the Philippines. Simultaneously with the execution of the agreement, SNPDC has also executed a term sheet for an offtake agreement with BHP Billiton for the purchase of product extracted from the project operations. Subject to the terms of the agreement, SNPDC has granted BHP Billiton or its related entity and permitted assigns, the exclusive rights to purchase laterite nickel ore mined by SNPDC in the MPSA project area at the Romblon Nickel Project. Under the terms of the agreement, an exploration and drilling evaluation program will be undertaken with the costs (approx US$250,000) of the program to be met solely by BHP Billiton and may be extended by mutual agreement following this initial phase. The offtake agreement is for the supply of 500,000 wet tonnes of product p.a. as base tonnage and SNPDC is not restricted in its rights to sell product in excess of that quantity to any third party. The offtake agreement is for an initial period of five years with options granted to extend for a further five years and three years.

FINDE MORE ARTICLE IN : PEL.AX

Find More Other News : Company, Exploration, Mine Trade & Market, Mining Top News, Nickel Mine