Impact: Very Positive
Strategic Resources has signed a definitive agency agreement with Javelin Global Commodities (Private) covering DR-grade iron ore feed supply for and DR-grade iron ore pellet offtake from Strategic’s 100%-owned pellet plant project at Port Saguenay, Quebec. The agreement also includes a working capital facility of up to US$150M. In our opinion, this is an important positive milestone for Strategic Resources. Javelin is a leading trading house in the steel industry, and this agreement will help provide iron concentrate feed as well as arrange the sale of pellets from the plant. As well, the US$150M working capital facility provides significant funding for the feasibility test work and working capital while Strategic pulls together project financing, with Societe Generale (EPA:GLE, Not Rated) as debt lead (read notable).
