PERTH (miningweekly.com) – ASX-listed Korab Resources has received a letter of intent (LoI) from an Indian company wanting to buy phosphate rock in shipments of 10 000 t each from the Geolsec project, in the Northern Territory.
Korab told shareholders that the LoI had the potential to generate earnings of more than A$1-million a shipment.
The LoI was in addition to a number of expressions of interest also received by Korab, which would see the company supply between 80 000 t/y and 90 000 t/y of phosphate rock under three separate transactions, as well as another expression of interest for the supply of 100 000 t/y of phosphate rock.
The LoI and the expressions of interest were in addition to the 250 000 t offtake agreement signed with DPA Oceana in November last year. The offtake agreement would see Korab supply 50 000 t/y of phosphate rock over a five-year period.
The Geolsec quarry was fully permitted to extract phosphate rock on a continuous basis, and could be expanded, subject to demand.