Iron Mining Group subsidiary IMG Iron Ore Trading (IMG Trading) has entered into a contract for sale of iron ore to an undisclosed global physical commodities company.
Under the terms of the free on-board contract, IMG Trading will deliver 300,000M metric tons (MT) of 63% iron ore to the port of Manzanillo, Mexico.
Delivery of the initial 100,000MT is due before 31 August 2011, while the balance of 200,000MT is due before 31 December 2011.
IMG Trading will receive an advance revenue payment equal to 65% of the contract price for iron ore delivered during each previous week.
The company will receive another 30% upon the successful delivery of each 100,000MT with the final balance paid within 30 days thereafter.