Mount Gibson terminates Sinogiant Steel offtake agreement

Company News

by Roma Christian

Mount Gibson Iron Limited (ASX:MGX) has announced it has formally terminated an offtake agreement with Sinogiant Steel Holdings Group Limited.

The company says the offtake agreement was entered into on 24 November 2016, and related to about one quarter of the first year’s planned production from its Iron Hill mine in Western Australia.

The iron ore product producer says termination comes following Sinogiant’s failure to comply with a fundamental term under the offtake agreement.

Mount Gibson says it has reserved the right to pursue Sinogiant for any resulting losses, and is now free to place all previously committed production to alternate customers.

Shares in Mount Gibson Iron Limited (ASX:MGX) are trading 2.94 per cent lower to 33 cents.

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.