NOM - Garnet Offtake agreement!

20.11.2017 kl 07:08 6597

Dette er en arkivert tråd!
Cooperation with The Barton Group for Engebø garnet sales and project development
Nordic Mining ASA ("Nordic Mining") has signed a Heads of Agreement with The
Barton Group ("Barton") related to offtake and commercial cooperation for garnet
from the Engebø rutile and garnet project. Barton is a leading US garnet
producer and distributor with a strong foothold, particularly in the North
American markets. Over the years, Barton has played a leading role in developing
the fast-growing application of waterjet cutting technology where garnet is the
dominant mineral.

Barton will be an industrial anchor investor in the pre-construction financing
for the Engebø project and subsequently in the construction financing to
establish the rutile and garnet operation.
The Barton Group agreement
Since 2011, Nordic Mining and Barton (together "the Parties") have had a
Memorandum of Understanding ("MoU") with the intention to establish a long-term
cooperation with regards to development, production, sales, marketing and
distribution of garnet products from Engebø. Barton has analysed and confirmed
the high-quality of the garnet products which have been produced in the Engebø
prefeasibility testwork.
Today, the Parties have entered into a Heads of Agreement ("HoA") confirming the
cooperation, which will be further developed based on the following main

· Offtake agreement for North-America
Nordic Mining and Barton have agreed the basic principles of an offtake
agreement for the exclusive distribution by Barton of Engebø garnet to the North
American markets. The garnet will be sold and distributed under Barton's brand
name for high-quality products.

Barton is a substantial producer and distributor in North America with 23
warehouses and an experienced marketing and technology organization supporting
customers all over the continent.

· Joint venture agreement for other markets
Nordic Mining and Barton intend to establish a jointly owned company ("Newco")
for sale and distribution of garnet from Engebø to markets outside of North
America. The terms and conditions for the operation and the Parties' cooperation
will be further negotiated.

The high quality of the Engebø garnet and cost-efficient logistics, combined
with Barton's comprehensive marketing and technology experience, are expected to
build competitive strength.

· Financing of pre-construction project development
Barton intends to participate in the pre-construction financing of the Engebø
project. The financing will be on the same terms as offered to other investors
if Nordic Mining should decide to arrange an equity issue related to funding of
pre-construction activities for the Engebø project.

· Construction financing
Barton intends to participate in the construction financing of the Engebø
project as an industrial anchor investor. The form and amount of Barton's
contribution will be further negotiated and evaluated as part of the total
solution for project financing.

Comments from Nordic Mining and Barton

Chairman of the Board of Nordic Mining, Tarmo Tuominen comments:
"We are very pleased with the agreement, which confirms the relation with Barton
and the parties' intention to play a leading role together in the international
garnet industry. Barton's achievements and leading position in the development
of waterjet cutting is impressive, and we look forward to the successful
building of a strong and mutually beneficial partnership."

CEO Nordic Mining, Ivar S. Fossum comments:

"Barton's confirmation of the quality of the Engebø garnet is the best assurance
we could get. The hard-rock garnet quality combined with Barton's experience and
competencies forms a solid basis for our collaboration. We look forward to
moving forward together with Barton as the world's leading garnet technology

Chairman and CEO of The Barton Group, Charles Bracken, comments:

"Barton is very pleased to be working with Nordic Mining to develop this world
-class resource. Nordic Mining and Barton's core values are aligned in our
commitment to quality, safety, environment, innovation and integrity. We look
forward to leveraging the strengths of both companies to create long-term value
for all stakeholders."

Information about The Barton Group (

Barton is a family-owned company founded in 1878 that has produced the world's
highest-quality garnet abrasives for more than six generations. The company's
initial operation included mining and milling garnet for the sandpaper industry.
Because of its ever-sharp crystalline structure, Barton garnet quickly became
the world standard for sandpaper applications.

Over the years, Barton has continued to develop new products, markets and
applications - including blasting abrasives, waterjet abrasives and waterjet
parts. Barton has a strong commitment to quality, performance and service to
communities and customers. Today Barton produces garnet abrasive products for
many diverse applications such as waterjet cutting, blast media, bonded and
coated abrasives and specialty lapping and grinding medias. Barton owns and
operates mining and milling operations in the Adirondack Mountains of upstate
New York. The facility operates year-round to meet the demand for quality, high
-performance garnet abrasives.
Redigert 20.11.2017 kl 07:12 Arkivert