Consolidated Thompson Iron Mines Ltd has entered into an Offtake Agreement and a Credit Agreement with SK Networks Co Ltd, a subsidiary of the third largest Korean conglomerate, SK Group. Pursuant to the Offtake Agreement, SKN has committed to purchase annually, for a ten year term, at fair market value and on commercially reasonable terms, 1 million tonnes of iron ore concentrate from CLM’s Bloom Lake mine. The Credit Agreement provides for a USD 50 million unsecured 5-year term credit facility which is expected to be available for drawdown prior to 31st January 2010. The facility is non-amortizing and carries a fixed annual interest rate of 5% payable on a semi annual basis. The principal amount of the facility can be repaid by the Company at any time. This credit facility will be used to fund potential expansion at Bloom Lake and for general working capital purposes. Harp Capital Corp. acted as advisor to CLM on the Credit Agreement.
