Tulla (ASX:TUL) signs HoA with Koch for funding at Norseman

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Tulla (ASX:TUL) signs HoA with Koch for funding at Norseman

Tulla (TUL), HoA, funding at Norseman project, Koch Metals, Share price
Image source: © Willgame | Megapixl.com

Highlights

  • Tulla has signed Heads of Agreement with Koch Metals to secure an off-take arrangement and funding for its latest iron-ore project, Norseman. 
  • According to the terms of the HoA, Koch will purchase a total of 400 million tonnes of JORC compliant iron ore in several tranches.
  • On the other hand, several factors are subjected to the off-take arrangement and funding. 

Mining and exploration company Tulla Resources Plc (ASX:TUL) announced that it has signed a nonbinding heads of agreement with Koch Metals Limited regarding an off-take arrangement and funding for its iron ore at the Norseman Project.

Read more: Deep Yellow (ASX:DYL) optimistic about Omahola Exploration

The Heads of Agreement: 

According to the terms of the Heads of Agreement, Koch will buy up to 400 million tonnes of JORC compliant iron ore. Koch has initially committed to purchasing 200 million tones and then in 50 million tonne tranches with further options to buy mine iron ore's life. Koch will also offer AU$42 million to support the exploration, development, and mining of the iron ore initially for three years and, after that, will fund 65% of all iron ore project costs.

The off-take arrangement:

As far as the off-take arrangement and funding is concerned, TUL has stated that it is conditional on several factors such as:

  • Finalising definitive agreements.
  • Koch raising capital and being admitted to the London Stock Exchange.
  • Due diligence related to the iron ore assets  
  • Securing other essential approvals.

What does Koch do?

Koch Metals Limited is an Australian private iron ore firm engaged with the development and production of iron ore assets and the sale of iron ore to third parties. Koch is also the 100% owner of the Constance Range iron ore project located in Queensland.

Meanwhile, on the ASX, the TUL stock was spotted trading 7.563% higher at AU$0.640 per share at 12:51 PM AEDT.

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