El Capitan and Logistica sign iron ore sale agreement

24 January 2016 (Last Updated January 24th, 2016 18:30)

Mining company El Capitan Precious Metals has signed an agreement to provide concentrated ore to Logistica US Terminals.

Mining company El Capitan Precious Metals has signed an agreement to provide concentrated ore to Logistica US Terminals.

Under the new agreement, El Capitan will use its AuraSource system at the mine site to process and separate the precious metals concentrates.

Logistica will take possession of the separated concentrates and deliver them to a smelter for processing.

"The new agreement between the two entities is the result of a very good match between the needs of El Capitan as a mine operator and the capabilities of Logistica."

The AuraSource heavy metals separation technology, which was bought in April 2014, separates hematite and magnetite from other ore elements.

The latest agreement follows El Capitan's previously announced agreement for the sale of iron ore for use in construction.

El Capitan board chairman John Stapleton said the terms of agreements eliminate the company's involvement in various such as trucking, ocean shipping, and refining, as well as those related to international permits.

The agreement will also allow El Capitan to focus on mining and basic separation, processing of ore, and remediation.

Logistica US Terminals contract mining manager said: "The new agreement between the two entities is the result of a very good match between the needs of El Capitan as a mine operator and the capabilities of Logistica."

El Capitan is expected to begin sales in January 2016.

In March 2014, Logistica signed an agreement to finance and operate the mining of iron ore at the El Capitan mine.