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| Home : Salmon River Signs Memorandum of Understanding With Chinese Steel Producer Providing Financing and Off-Take Private Placement for Up to C$1.5 Million Announced |
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Nov 05
2011 |
Salmon River Signs Memorandum of Understanding With Chinese Steel Producer Providing Financing and Off-Take Private Placement for Up to C$1.5 Million Announced |
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 4, 2011) - Salmon River Resources Ltd. (TSX VENTURE:SAL) ("Salmon River" or the "Company") is pleased to announce that it has signed a non-binding Memorandum of Understanding (the "MOU") with General Steel Holdings Inc. (NYSE:GSI) ("General Steel"), a company listed on the New York Stock Exchange, for itself and on behalf of certain subsidiaries and affiliates (together, the "GS Group") regarding rights to purchase part of any future iron ore production from properties currently under option to and/or to be acquired by Salmon River (the "Off-Take") and to provide assistance to Salmon River in raising up to C$110 million in private placement financings as well as committing to fund future capital expenditures and other development costs. The MOU is intended to lay the groundwork for Salmon River to fund the exercise of its exclusive option to acquire 100% of Treppo Grande Iron Pty Ltd. ("Treppo Grande") and to fund future development costs of the Treppo Grande iron ore project (the "Treppo Grande Project"). Under the MOU terms, the GS Group has also committed to fund future capital requirements as well as provide project management and co-ordination services to the Company in return for compensation equal to up to a 51% profit interest in the Treppo Grande Project, on terms to be mutually agreed in the final definitive agreements. |
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| Source:http://www.marketwire.com/mw/release.do?id=1582266&sourceType=3 |
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