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NSL hunts for new JV partner for India project

3rd October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed junior NSL Consolidated was on the hunt for a new joint venture (JV) partner for its iron-ore operations in India, after its partner failed to meet requirements.

In January, NSL signed a heads of agreement with India’s Vijay Mining, which is a wholly owned subsidiary of the larger Vijay Group, that would see Vijay inject some A$13.1-million capital into NSL in return for a 40% interest in subsidiary NSL Mining Resources.

However, Vijay was yet to provide the agreed-upon funding, which led to NSL serving the company a default notice in July.

The junior said on Wednesday that it was in continued discussions with Vijay representatives, and while they expect a transfer of “some funds” in the near future, NSL was unsure if the discussions would result in a satisfactory solution.

Mining at the JV area halted in August as a result of an excavator breakdown, and is yet to resume.

In the meantime, the company was progressing discussions with various other parties to replace Vijay in the JV, and stated that these parties were currently conducting due diligence studies.

Edited by Creamer Media Reporter

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