New Offtake Agreement with Domestic Steel Mill

INTRODUCTION

    1. The board of directors (“Board”) of Fortress Minerals Limited (the “Company” and together with its subsidiaries, the “Group”) wishes to announce that its subsidiary, Fortress Resources Pte. Ltd. (“FRPL”) had on 1st September 2020, entered into a new one-year offtake agreement (“Agreement”) with a third-party domestic steel mill in Malaysia (“DSM”).
    1. Pursuant to the Agreement, FRPL has agreed to deliver to DSM approximately 400,000 wet metric tonnes (“WMT”) to DSM for the period commencing 1 September 2020 to 31 August 2021 (the “Period”) (the “Deliverables”). The Deliverables is subject to a variance of an additional twenty percent or a reduction of ten percent at the option of FRPL.
  1. The selling price of the Deliverables will be based on a formula guided by, amongst others, the average of the available daily price of Platts for 65% Fe CFR North China, adjusted subject to the Fe content of each shipment of the Deliverables.

RATIONALE

    1. The Board is of the view that the Agreement will provide recurrent income and cash flows to the Group during the Period and strengthen its financial position.
    1. The Agreement is not expected to have any impact on the net asset value per share of the Group for the financial year ending 28 February 2021.
  1. The Agreement is expected to contribute positively to the earnings per share of the Group for the financial year ending 28 February 2021.

INTEREST OF DIRECTORS AND CONTROLLING SHAREHOLDERS

  1. None of the directors or substantial shareholders of the Company and their respective associates has any interest, direct or indirect, in the Agreement, save for their interest arising by way of their shareholdings and/or directorship, as the case may be, in the Company.

BY ORDER OF THE BOARD OF
FORTRESS MINERALS LIMITED

Dato’ Sri Ivan Chee Yew Fei
Chief Executive Officer
7 October 2020

 

 

Fortress Minerals Limited (the “Company”) was listed on Catalist of the Singapore Exchange Securities Trading Limited on 27 March 2019. The initial public offering of the Company was sponsored by PrimePartners Corporate Finance Pte. Ltd. (the “Sponsor”).

This announcement has been reviewed by the Company’s Sponsor. It has not been examined or approved by the Singapore Exchange Securities Trading Limited (the “Exchange”) and the Exchange assumes no responsibility for the contents of this document, including the correctness of any of the statements or opinions made or reports contained in this document. The Sponsor has also not drawn on any specific technical expertise in its review of this announcement.

The contact person for the Sponsor is Ms Jennifer Tan, Associate Director, Continuing Sponsorship (Mailing Address: 16 Collyer Quay, #10-00 Income at Raffles, Singapore 049318 and E-mail: [email protected]).