Solid Resources Ltd. (TSXV:SRW,FWB:YRS) signed a definitive and exclusive Co-operation Agreement with a wholly owned subsidiary of Glencore Xstrata plc, for joint due diligence of the Cehegin iron project. The Co-operation Agreement also provides for the potential formation of a joint venture to develop the Cehegin Iron Ore Mine in the Province of Murcia, south-eastern Spain.
As quoted in the press release:
Significant terms of the potential JVA are:
- Glencore to hold a 20% interest, with Solid maintaining an 80% interest.
- Glencore to exclusively purchase all production.
- Agreement to jointly pursue third party financing when required.
- Dilution of non-financing partner(s) at fair market value.
Solid Resources CEO, Greg Pendura, said:
A strategic partnership with Glencore is a major step towards putting the Cehegin Project into production. Glencore gives Solid access to world renowned expertise in mining development, worldwide marketing and logistics. The strength of Glencore combined with the historical drilling and production data available on the Cehegin Iron Ore Mine will greatly facilitate the advancement of this project.