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Sherwin shares soar on offtake deal

16th May 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The share price of ASX-listed Sherwin Iron jumped by nearly 14% on Thursday after the company announced that it has secured a takeoff agreement for some 200 000 t of direct shipping ore (DSO) produced at its Roper River tenement, in the Northern Territory.

Sherwin told its shareholders that it had signed a takeoff agreement with one of the top three iron-ore traders in China, adding that all 200 000 t of the agreed tonnage would be shipped within the next four months.

The agreement would enable Sherwin to appropriately test all of the proposed mining, crushing and transport of ore from Area C within the Roper River project, prior to a planned start of full production during November this year.

Full production was still subject to regulatory approvals.

Sherwin noted that the first delivery under the contract was expected in June, adding that site preparations had started, with control panel drilling under way, and pre-stripping expected shortly.

The Roper River project was expected to deliver an initial three-million tons a year of iron-ore, which would be shipped across East Arm Wharf. The project has an indicated resource of 39.5-million tons, grading 57.9% iron.

The company's shares were trading at a high of A$0.082 a share on Thursday.

Edited by Creamer Media Reporter

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