Australian miner Moly Mines has secured approval from stakeholders for A$38m ($35.2m) sale agreement with Mineral Resources (MRL) to sell iron ore output at Spinifex Ridge mine in the Pilbara region of Western Australia..
As per the terms of the agreement, MRL will make the payment in two installments with first upfront tranche to be paid on 12 July 2013 and final payment economic life exhaustion of the mine.
The agreement is expected to raise Moly’s cash and liquid assets to around A$80m ($74.2m), according to the company.
The purchase price is expected to be calculated on the basis of an agreed minimum product tonnage that will be determined under the current mine plan as at 1 July 2013.
Moly claimed that the current market instability along with its strong balance sheet has positioned the company in a significant status to acquire projects.
"The Company would seek to avoid high sovereign risk jurisdictions," the company added.