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Korab fields more interest in Geolsec product

11th March 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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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.

Edited by Creamer Media Reporter

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