Vancouver, British Columbia--(Newsfile Corp. - August 13, 2019) - A.I.S. Resources Limited (TSXV: AIS) (OTCQB: AISSF) has signed a contract for a significant regular delivery of manganese ore to an agricultural product manufacturer in China. Under the terms of the contract, A.I.S. Resources will supply 1,000 tonnes of manganese every two weeks for 12 months. At the current grade and weekly benchmark price, this contract has an estimated gross revenue of US$274,400 every two weeks.
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Over the 12 month contract, the company will ship 26,000 tonnes for an estimated gross revenue of US$7 million or CDN$9.26 million.
Phil Thomas, President and CEO, stated: "I am delighted we have signed a long term contract with a substantial buyer on very competitive terms. Our logistics team is working very efficiently and we have improved our loading process eliminating the cost of tuff bags. We have engaged Impala/Trafigura to provide our shipping and export services resulting in substantial savings. This contract will underpin our expansion plans. As soon as we reach 5,000 tonne shipments we will revert to break-bulk Handymax shipping and realize further savings."
Manganese ore is currently sold based on the price for each 1% manganese content. The company negotiated at price of US$5.60 per dry metric tonne, which is a 1.75% discount to the Platts Manganese 44% CFR lump benchmark price of US$5.70. With the company's manganese ore independently tested at 49% manganese content, A.I.S. is receiving US$274.40 per tonne.
Payment terms are by letter of credit with 90% upon vessel departure from Lima, and 10% following CIQ analysis upon arrival in China, with the trip estimated at 35 to 37 days.
The contract includes the 200 tonnes shipped earlier in the month from Lima, Peru. Currently 300 tonnes of high-grade manganese ore fines have been loaded into twelve containers on a loose basis at Lima Port eliminating the cost of tuff bags. Next shipment of 500 tonnes is expected on 15 August 2019.
The company has been working closely with its contract miner to open the Victor mine that shares the same manganese body as the San Jorge mine. The company's geologist visited the mine in the last two weeks and the mine engineer has completed the necessary mining design works. As additional equipment arrives this week the company plans to expand production, after the overburden is removed and benches in the pit are created, which will enable the company to move toward its short-term target of producing 10,000 tonnes a month.
The company's current activities are focused on the mining and trading of manganese ores in Peru and exploration and development of lithium brine projects in northern Argentina.
For more information please visit the company's website www.AISresources.com, contact Phil Thomas, President and CEO, by email at pthomas@AISresources.com or Martyn Element, Chairman, at 604-687-6820 or email melement@AISresources.com.
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