Amex Resources Limited
(ASX:AXZ) says it has terminated a US$100 million contract its signed with MCC Overseas for the design and construction of its MBA Delta iron sands project in Fiji.
The deal, signed in December 2013 is in default as MCCO was unable to raise US$80 million in funding arrangements to complete its contractual commitments. Works required were also not completed and Amex has decided to part ways and seek alternative arrangements for the project. A US$20 million advance payment is required to be repaid by MCCO.
Amex says it has secured short term funding and been granted extension to mining and port leases and is finalising additional funds for working capital.
Amex Resources reported a net loss of $13.8 million for the 2014 financial year.
