TerraCom Ltd (ASX:TER) has signed a binding term sheet for a 5.5 year offtake in regards to hard coking coal, produced from the BNU Coal Mine in Mongolia.
The company signed this deal with a subsidiary of the Kingho Group, which is one of the largest private coal companies in China.
TerraCom says this agreement is for a total of 7.5 million tonnes over the 5.5 year term.
The company also says a definitive sales agreement will be developed in the coming weeks, and that payment terms are in USD in the form of 100% irrevocable Letters of Credit.
TerraCom posted a net loss of $51.8 million at 30 June 2016.